The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Marazion may extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Marazion lease extension. Putting off the costs now simply increases the premium you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you better control over the value of your Marazion leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ryan, started to get close to the 80-year threshold with the lease on his ground floor apartment in Marazion. Having bought his home two decades ago, the length of the lease was of little importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Ryan arranged for a lease extension at the eleventh hour last April. Ryan and the freeholder via the management company in the end agreed on an amount of £6,000 . If the lease had dropped below eighty years, the premium would have increased by at least £900.
In 2010 we were approached by Mr and Mrs. S Bertrand who, having took over the lease of a ground floor apartment in Marazion in April 2002. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative properties in Marazion with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 invoiced annually. The lease lapsed in 2081. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus legals.
In 2012 we were phoned by Mrs I Nelson who, having moved into a studio apartment in Marazion in January 1997. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable premises in Marazion with an extended lease were in the region of £237,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished on 14 July 2092. Given that there were 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.