Unfortunately that a Maryport residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Maryport property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Maryport will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Maryport leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her two bedroom apartment in Maryport, Kate commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was finalised in September 2015. The freeholder’s charges were restricted to a tad over 650 pounds.
Last Spring we were contacted by Ms S Morris , who moved into a purpose-built flat in Maryport in January 2012. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative properties in Maryport with a long lease were valued about £205,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 26 June 2105. Given that there were 79 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
In 2011 we were phoned by Mr Finley Reed who, having owned a one bedroom apartment in Maryport in September 1998. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar residencies in Maryport with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish on 4 August 2094. Given that there were 68 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.