Maryport residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 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.
Following protracted correspondence with the freeholder of her studio flat in Maryport, Ellen initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work completed in October 2010. The freeholder’s charges were restricted to a tad over 550 pounds.
Last July we were phoned by Mr and Mrs. T Davis , who completed a one bedroom apartment in Maryport in April 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Maryport with a long lease were valued around £206,200. The average amount of ground rent was £55 billed yearly. The lease terminated in 2080. Given that there were 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
In 2009 we were e-mailed by Mr and Mrs. F Hernández who, having moved into a one bedroom flat in Maryport in September 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar premises in Maryport with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 collected annually. The lease concluded on 5 April 2100. Given that there were 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.