The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Maryland can extend the lease for an additional ninety years under statute. Do think carefully before delaying your Maryland lease extension. Putting off that expense today simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold residencies in Maryland with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Maryland can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 Maryland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her ground floor flat in Maryland, Bethan initiated the lease extension process as the eighty year mark was quickly coming. The legal work completed in October 2005. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were called by Dr Rosie Simon who, having purchased a studio apartment in Maryland in April 2009. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar homes in Maryland with an extended lease were in the region of £200,000. The average amount of ground rent was £50 collected per annum. The lease concluded in 2102. Given that there were 77 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Maryland property is 151A Ham Park Road in May 2010. The matter came before the Tribunal by way of a vesting order made on 12 June 2009 Deputy District Judge Coonan in Bow County Court. The tribunal decided that the sum payable for the m to be paid for the lease extension was £21,445 This case was in relation to 1 flat.