It’s a harsh truth that a Mousehole residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Mousehole property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Mousehole will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Mousehole,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mousehole valuers.
Cameron was the the leasehold proprietor of a 2 bedroom flat in Mousehole being sold with a lease of fraction over sixty years left. Cameron on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and secured an acceptable deal informally and sell the property.
Last Winter we were e-mailed by Mr and Mrs. L Brown , who bought a first floor apartment in Mousehole in June 2007. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative properties in Mousehole with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2077. Having 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.
Dr Alisha Morel was assigned a lease of a one bedroom apartment in Mousehole in May 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical residencies in Mousehole with an extended lease were valued about £210,600. The average ground rent payable was £45 billed per annum. The lease elapsed on 3 August 2088. Considering the 62 years remaining we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.