Mevagissey residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold premises in Mevagissey with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
Engaging our service gives you better control over the value of your Mevagissey leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Theo was the the leasehold owner of a studio flat in Mevagissey on the market with a lease of fraction over 59 years left. Theo informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2010 we were called by Dr Kate Green who, having acquired a recently refurbished apartment in Mevagissey in July 2009. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical residencies in Mevagissey with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed in 2097. Considering the 71 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. E James owned a purpose-built flat in Mevagissey in March 2008. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable properties in Mevagissey with an extended lease were worth £249,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 24 April 2077. Considering the 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £42,800 and £49,400 exclusive of costs.