For those whose Mousehole home is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold residencies in Mousehole with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Mousehole can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mousehole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Oscar, came perilously close to the eighty-year threshold with the lease on his one bedroom flat in Mousehole. In buying his home two decades ago, the length of the lease was of no importance. As luck would have it, he realised he needed to take action soon on a lease extension. Oscar was able to extend his lease just under the wire in July. Oscar and the freeholder eventually settled on an amount of £6,000 . If the lease had dipped to less than eighty years, the price would have become more costly by at least £1,050.
Ms N Michel purchased a basement flat in Mousehole in February 2003. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Mousehole with a long lease were valued about £218,000. The mid-range ground rent payable was £45 collected per annum. The lease finished in 2089. Given that there were 63 years outstanding we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
Mr and Mrs. S Lewis acquired a purpose-built flat in Mousehole in September 2012. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical properties in Mousehole with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 billed annually. The lease finished in 2100. Having 74 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.