Mevagissey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Mevagissey enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Mevagissey you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Mevagissey with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Mevagissey leasehold, as your property will be more valuable and saleable in terms 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.
Connor owned a studio flat in Mevagissey being sold with a lease of a little over 61 years outstanding. Connor informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. D Roux who, having was assigned a lease of a first floor flat in Mevagissey in March 2007. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical homes in Mevagissey with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2081. Having 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of costs.
Dr Niamh Lefèvre bought a one bedroom flat in Mevagissey in August 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Mevagissey with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2092. Considering the 67 years left we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.