Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Marazion. Inevitably, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Marazion have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give due attention before delaying your Marazion lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
Leasehold residencies in Marazion with more than 100 years unexpired on the lease are sometimes regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
Lease extensions in Marazion can be a difficult process. We recommend you procure guidance from a lawyer 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 Marazion lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Rory was the the leasehold proprietor of a conversion apartment in Marazion on the market with a lease of a little over sixty years outstanding. Rory on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2009 we were phoned by Ms Chantelle Brown who, having completed a one bedroom flat in Marazion in June 2009. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparable premises in Marazion with a long lease were in the region of £245,000. The mid-range ground rent payable was £45 billed quarterly. The lease concluded on 28 August 2093. Given that there were 68 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last Autumn we were e-mailed by Mr and Mrs. Y Hernández , who acquired a studio apartment in Marazion in April 1995. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical properties in Marazion with an extended lease were valued around £280,000. The average amount of ground rent was £55 invoiced yearly. The lease end date was on 24 May 2104. Taking into account 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.