Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Mevagissey. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Mevagissey have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Mevagissey lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Mevagissey with more than 100 years outstanding 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 upside in purchasing the freehold unless savings on ground rent and service 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; |
| 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. |
| 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. |
Lease extensions in Mevagissey can be a difficult process. We recommend you procure professional help from a conveyancer 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.
Trailing unsuccessful correspondence with the landlord of her first floor flat in Mevagissey, Harriet initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension was concluded in September 2007. The landlord’s costs were restricted to approximately 700 GBP.
In 2009 we were approached by Ms Zoe André who, having acquired a recently refurbished apartment in Mevagissey in June 2000. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparative homes in Mevagissey with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2098. Having 73 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Dr F Martínez took over the lease of a one bedroom apartment in Mevagissey in March 2003. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable flats in Mevagissey with an extended lease were worth £264,000. The mid-range ground rent payable was £60 invoiced annually. The lease terminated on 7 May 2078. Considering the 53 years remaining we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.