When it comes to domestic leasehold property in Mousehole, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Anyone in Mousehole with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once a lease has under 80 years outstanding, under the current legislation the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Mousehole leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her ground floor flat in Mousehole, Mollie initiated the lease extension process just as her lease was approaching the all-important eighty-year threshold. The lease extension was concluded in June 2006. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were e-mailed by Dr C Wright who, having was assigned a lease of a one bedroom flat in Mousehole in June 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Mousehole with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected yearly. The lease termination date was in 2105. Given that there were 80 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Last April we were approach by Mr and Mrs. B Green , who bought a studio apartment in Mousehole in August 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Mousehole with an extended lease were worth £200,800. The average amount of ground rent was £65 collected per annum. The lease elapsed in 2085. Considering the 60 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 not including legals.