When it comes to domestic leasehold premises in Mevagissey, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years remaining. Residents in Mevagissey with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Mevagissey with over one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Mevagissey,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mevagissey valuers.
Half a year ago Milo, came very close to the 80-year threshold with the lease on his garden flat in Mevagissey. Having purchased his flat twenty years previously, the lease term was of minimal concern. Luckily, he realised he needed to take steps soon on Extending the lease. Milo was able to extend his lease just ahead of time in August. Milo and the freeholder via the management company eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,050.
In 2011 we were e-mailed by Mr and Mrs. J Mason who, having took over the lease of a studio flat in Mevagissey in November 2009. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Comparable flats in Mevagissey with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease termination date was on 2 September 2078. Given that there were 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £41,800 and £48,400 exclusive of legals.
Last month we were phoned by Mr and Mrs. G Leroy , who moved into a recently refurbished flat in Mevagissey in May 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Mevagissey with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed yearly. The lease expired on 10 February 2089. Considering the 63 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including legals.