Maryland residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
The lawyers that we work with undertake Maryland 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.
After unsuccessful negotiations with the freeholder of her first floor apartment in Maryland, Georgia initiated the lease extension process just as the lease was approaching the critical eighty-year mark. The lease extension completed in April 2010. The landlord’s costs were restricted to less than 700 GBP.
Dr F Bennett was assigned a lease of a studio flat in Maryland in November 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Maryland with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished in 2094. Considering the 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
An example of a Lease Extension case for a Maryland residence is 151A Ham Park Road in May 2010. The matter came before the Tribunal by way of a vesting order made on 12 June 2009 Deputy District Judge Coonan in Bow County Court. The tribunal decided that the sum payable for the m to be paid for the lease extension was £21,445 This case was in relation to 1 flat.