Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Mevagissey. Clearly, the term of lease left shortens over time. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Mevagissey have the right to extend the lease for an additional ninety years in accordance with legislation. You should give due consideration before putting off your Mevagissey lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Mevagissey with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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; |
| Lloyds TSB 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. |
Regardless of whether you are a tenant or a landlord in Mevagissey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mevagissey valuers.
In the wake of eight months of protracted negotiations with the freeholder of her ground floor flat in Mevagissey, Shannon initiated the lease extension process as the 80 year mark was swiftly approaching. The lease extension was concluded in October 2005. The landlord’s costs were restricted to slightly above 650 GBP.
Ms Chantelle Khan moved into a first floor flat in Mevagissey in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Mevagissey with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 collected per annum. The lease finished on 2 September 2101. Taking into account 76 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mrs G López completed a purpose-built apartment in Mevagissey in September 2005. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Mevagissey with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease finished on 26 September 2081. Given that there were 56 years unexpired we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.