It’s an underpublicised truth that a Maryport residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Maryport property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Maryport will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Maryport can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Maryport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jasper, started to get near to the 80-year threshold with the lease on his garden flat in Maryport. Having purchased his flat 19 years previously, the length of the lease was of no relevance. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Jasper extended the lease just under the wire last June. Jasper and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had gone lower than 80 years, the amount would have gone up by at least £1,150.
Last year we were approach by Dr E Flores , who was assigned a lease of a studio apartment in Maryport in February 2001. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical homes in Maryport with an extended lease were worth £267,600. The average amount of ground rent was £65 invoiced annually. The lease terminated on 4 October 2092. Taking into account 67 years remaining we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of costs.
Dr Riley Kelly purchased a one bedroom flat in Maryport in August 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Maryport with a long lease were worth £206,200. The average amount of ground rent was £55 billed monthly. The lease ended on 18 August 2081. Having 56 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.