The value of Mevagissey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is below than 80 years
Leasehold residencies in Mevagissey with more than one hundred years remaining 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mevagissey can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Mevagissey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the freeholder of her first floor apartment in Mevagissey, Lydia started the lease extension process as the 80 year mark was rapidly approaching. The transaction completed in October 2010. The landlord’s fees were negotiated to about 450 pounds.
Mrs Georgia Lewis acquired a newly refurbished apartment in Mevagissey in May 2011. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Mevagissey with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2079. Considering the 53 years left we calculated the premium to the landlord to extend the lease to be between £37,100 and £42,800 plus fees.
Dr K Mercier acquired a first floor apartment in Mevagissey in November 1995. The question was if we could approximate the price could be for a ninety year lease extension. Identical properties in Mevagissey with 100 year plus lease were worth £220,400. The average ground rent payable was £45 collected every twelve months. The lease elapsed in 2090. Taking into account 64 years remaining we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus legals.