The 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 escalate significantly once the remaining term is less than eighty years
Leasehold properties in Maryport with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake 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.
In the wake of 9 months of unsuccessful discussions with the freeholder of her leasehold flat in Maryport, Leah initiated the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was concluded in September 2014. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were called by Mr Jason Campbell who, having was assigned a lease of a basement apartment in Maryport in October 2000. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Maryport with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected yearly. The lease expired in 2100. Considering the 74 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2009 we were called by Mrs Aimee López who, having purchased a garden apartment in Maryport in September 2004. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparative properties in Maryport with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded on 13 September 2089. Having 63 years remaining we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.