When it comes to long leasehold premises in Mevagissey, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Mevagissey with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the current legislation the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Mevagissey with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Engaging our service will provide you enhanced control over the value of your Mevagissey leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold proprietor of a studio apartment in Mevagissey being marketed with a lease of a little over 61 years outstanding. Harry on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Harry to invoke his statutory right. Harry procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Dr Toby Sharif owned a purpose-built apartment in Mevagissey in June 1998. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Mevagissey with a long lease were in the region of £246,800. The average ground rent payable was £60 billed every twelve months. The lease lapsed on 19 June 2075. Taking into account 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including professional charges.
In 2014 we were e-mailed by Mr Reuben Sharif who, having bought a one bedroom flat in Mevagissey in March 1996. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Identical flats in Mevagissey with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2086. Given that there were 61 years unexpired we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.