When it comes to long leasehold property in Maryport, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Residents in Maryport with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Maryport with over one hundred years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Retaining our service gives you increased control over the value of your Maryport leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harrison owned a high value apartment in Maryport being sold with a lease of just over 72 years unexpired. Harrison informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Christmas we were contacted by Dr O Stewart , who owned a newly refurbished flat in Maryport in April 2002. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Maryport with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 invoiced monthly. The lease ran out on 7 November 2077. Given that there were 51 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
In 2014 we were approached by Mrs S Stewart who, having owned a purpose-built apartment in Maryport in April 1996. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Identical premises in Maryport with a long lease were valued about £285,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed in 2097. Taking into account 71 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.