The market value of Maryport leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold premises in Maryport with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancing solicitor we work with provide it.
Last Summer Teddy, started to get near to the eighty-year mark with the lease on his leasehold apartment in Maryport. Having purchased his flat 19 years ago, the unexpired term was of little interest. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Teddy arranged for a lease extension just in the nick of time in August. Teddy and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the price would have escalated by at least £900.
In 2014 we were contacted by Ms Alice Adams who, having moved into a studio flat in Maryport in October 2002. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar premises in Maryport with a long lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease termination date was on 8 February 2082. Taking into account 56 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.
In 2010 we were called by Mrs Niamh Bennett who, having purchased a one bedroom apartment in Maryport in September 2008. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Maryport with a long lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed in 2102. Taking into account 76 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.