Mevagissey leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Mevagissey will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Mevagissey leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her garden apartment in Mevagissey, Ellen initiated the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in March 2009. The freeholder’s charges were negotiated to a tad over six hundred GBP.
Last Winter we were approach by Dr H Khan , who acquired a one bedroom flat in Mevagissey in January 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Mevagissey with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 collected quarterly. The lease ran out in 2081. Taking into account 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Last Autumn we were e-mailed by Ms E Rivera , who bought a studio flat in Mevagissey in September 2005. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Identical residencies in Mevagissey with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed per annum. The lease expired on 5 October 2092. Considering the 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.