Mevagissey leases on residential properties are gradually diminishing 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 would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Mevagissey with more than 100 years remaining 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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 procure 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 in-depth market knowledge procuring Mevagissey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her basement apartment in Mevagissey, Catherine commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in March 2007. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Mrs Jennifer Hall who, having moved into a studio flat in Mevagissey in June 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Mevagissey with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed in 2103. Having 78 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
In 2014 we were contacted by Dr H Hill who, having purchased a one bedroom apartment in Mevagissey in July 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Identical premises in Mevagissey with an extended lease were valued around £186,000. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2083. Considering the 58 years outstanding we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of fees.