It’s an underpublicised certainty that a Mevagissey residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Mevagissey property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Mevagissey will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with over one hundred 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 residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Mevagissey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mevagissey valuers.
During the course of the last few months Owen, came critically near to the 80-year threshold with the lease on his purpose- built flat in Mevagissey. Having purchased his home twenty years ago, the unexpired term was of minimal concern. Fortunately, he realised he needed to take action soon on Extending the lease. Owen extended the lease just ahead of time last September. Owen and the landlord in the end settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by at least £1,075.
In 2010 we were e-mailed by Mr V Jones who, having bought a ground floor flat in Mevagissey in October 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Mevagissey with a long lease were worth £275,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed on 27 June 2102. Given that there were 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
Last Winter we were called by Mr and Mrs. L Young , who completed a newly refurbished flat in Mevagissey in July 2008. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Mevagissey with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease terminated on 25 March 2082. Given that there were 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.