Mevagissey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Mevagissey tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Mevagissey you would be well advised to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Mevagissey leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Mevagissey,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mevagissey valuers.
Last year Hunter, came seriously close to the 80-year threshold with the lease on his basement apartment in Mevagissey. In buying his flat 19 years previously, the unexpired term was of minimal relevance. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Hunter was able to extend his lease just under the wire last July. Hunter and the freeholder in the end agreed on a premium of £6,000 . If he not met the deadline, the premium would have become more costly by at least £850.
In 2012 we were e-mailed by Ms K Thomas who, having was assigned a lease of a studio apartment in Mevagissey in April 2012. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable premises in Mevagissey with a long lease were valued about £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 26 November 2098. Given that there were 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Spring we were e-mailed by Mr and Mrs. O White , who owned a ground floor apartment in Mevagissey in January 1997. The question was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Mevagissey with a long lease were valued about £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease expired on 25 July 2078. Having 52 years left we approximated the compensation to the freeholder for the lease extension to be within £41,800 and £48,400 plus expenses.