The nearer a domestic lease in Maryport gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Maryport will qualify for this right; however a lawyer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Maryport,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maryport valuers.
Callum owned a studio flat in Maryport being sold with a lease of a few days over fifty eight years outstanding. Callum on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2013 we were called by Dr Mia Khan who, having acquired a studio apartment in Maryport in May 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Maryport with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 billed yearly. The lease end date was in 2093. Taking into account 68 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2014 we were contacted by Mr T Thomas who, having bought a one bedroom apartment in Maryport in April 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical residencies in Maryport with an extended lease were valued around £208,600. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2082. Having 57 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of legals.