The value of Mousehole leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Mousehole,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mousehole valuers.
Last October Lewis, came very close to the 80-year mark with the lease on his ground floor flat in Mousehole. Having purchased his flat 18 years previously, the lease term was of little importance. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Lewis extended the lease at the eleventh hour last September. Lewis and the freeholder in the end agreed on a premium of £5,500 . If he not met the deadline, the figure would have gone up by at least £1,000.
In 2014 we were phoned by Mr H Hernández who, having purchased a basement apartment in Mousehole in March 1998. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar properties in Mousehole with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2098. Having 73 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Christmas we were contacted by Dr Oscar Adams , who moved into a purpose-built apartment in Mousehole in March 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar flats in Mousehole with an extended lease were worth £264,000. The average ground rent payable was £60 collected monthly. The lease lapsed in 2078. Given that there were 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 plus expenses.