The nearer a domestic lease in Maryport gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Maryport will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Maryport lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Mason, came perilously close to the eighty-year threshold with the lease on his first floor flat in Maryport. In buying his property two decades ago, the lease term was of little importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Mason arranged for a lease extension just ahead of time in January. Mason and the freeholder in the end agreed on sum of £5,000 . If he not met the deadline, the sum would have increased by a minimum £900.
In 2014 we were contacted by Dr Isobel Flores who, having purchased a garden apartment in Maryport in June 2011. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Maryport with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed in 2076. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including professional charges.
In 2012 we were e-mailed by Ms G Campbell who, having took over the lease of a newly refurbished flat in Maryport in October 2008. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Maryport with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2096. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.