Mevagissey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Mevagissey enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mevagissey you really ought to see if your lease has between 70 and ninety years left. There are good reasons why a Mevagissey leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Mevagissey with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Mevagissey can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mevagissey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Omar, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Mevagissey. Having bought his flat 19 years previously, the unexpired term was of little bearing. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Omar arranged for a lease extension just under the wire last August. Omar and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had gone below eighty years, the price would have gone up by at least £1,025.
Mr and Mrs. C Brown bought a ground floor flat in Mevagissey in June 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable flats in Mevagissey with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 collected annually. The lease ran out on 13 September 2087. Given that there were 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of expenses.
In 2009 we were e-mailed by Mrs Rachael Bailey who, having completed a purpose-built flat in Mevagissey in June 2005. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable properties in Mevagissey with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended in 2098. Taking into account 72 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.