With a domestic leasehold property in Mevagissey, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Mevagissey with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When the lease term has fewer than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Mevagissey leasehold, as your property will be more valuable and saleable in respect 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.
In the wake of eight months of protracted correspondence with the freeholder of her leasehold flat in Mevagissey, Samantha initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension completed in August 2008. The freeholder’s charges were negotiated to less than 600 GBP.
Last Autumn we were phoned by Ms Sarah Torres , who was assigned a lease of a one bedroom flat in Mevagissey in May 2012. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative flats in Mevagissey with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended on 2 November 2099. Taking into account 74 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Last Winter we were phoned by Dr A Wood , who bought a first floor flat in Mevagissey in January 2010. The question was if we could approximate the premium would be for a 90 year lease extension. Similar flats in Mevagissey with a long lease were in the region of £166,400. The average ground rent payable was £60 collected monthly. The lease concluded on 25 July 2079. Given that there were 54 years unexpired we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.