Main reasons to commence your Mevagissey lease extension

Main reasons to commence your Mevagissey lease extension today:

A Mevagissey lease depreciates with the years remaining on the lease.

For anyone whose Mevagissey flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold residencies in Mevagissey with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not issue a mortgage on a short lease

Lenders are really restricting their approach as regards to homes in Mevagissey with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus restricting the amount of potential buyers.

What makes us experts in Mevagissey lease extensions?

Regardless of whether you are a tenant or a landlord in Mevagissey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mevagissey valuers.

Mevagissey Lease Extension Case Studies:

Ibrahim, Mevagissey, Cornwall,

Ibrahim was the the leasehold proprietor of a conversion apartment in Mevagissey on the market with a lease of fraction over 72 years left. Ibrahim informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.

Mevagissey case:

Mr and Mrs. S Campbell acquired a basement flat in Mevagissey in August 1998. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar homes in Mevagissey with a long lease were valued around £280,000. The average ground rent payable was £55 billed per annum. The lease end date was on 28 June 2105. Considering the 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.

Mevagissey case:

In 2010 we were phoned by Dr A Mercier who, having completed a one bedroom apartment in Mevagissey in May 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Mevagissey with an extended lease were valued around £193,400. The average amount of ground rent was £65 billed annually. The lease came to a finish in 2085. Taking into account 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.