Main reasons to commence your Maryland lease extension

Why you should commence your Maryland lease extension today:

A Maryland leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Maryland. Inevitably, the term of lease left shortens over time. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Maryland have the right to extend the lease for a further ninety years under legislation. You should give careful consideration before delaying your Maryland lease extension. Putting off that expense now only increases the price you will ultimately have to pay to extend your lease

Maryland property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not loan monies with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This will cause difficulties once you wish to market or refinance your property as it will be effectively unmortgageable. Even though you may have no immediate plan to sell but when you do your buyer will have to wait two years before being able to commence the legal procedures for a lease extension.

Get in touch with one of our Maryland lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Maryland,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Maryland valuers.

Maryland Lease Extension Case Summaries:

Alex, Maryland, London

During the course of the last few months Alex, came critically close to the 80-year mark with the lease on his studio flat in Maryland. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Alex arranged for a lease extension at the eleventh hour in April. Alex and the freeholder via the management company subsequently settled on an amount of £6,000 . If the lease had slipped lower than 80 years, the figure would have gone up by at least £1,125.

Maryland case:

Last Winter we were called by Mr and Mrs. V Sánchez , who moved into a basement apartment in Maryland in September 2007. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Maryland with an extended lease were worth £171,800. The average amount of ground rent was £55 invoiced yearly. The lease elapsed on 3 October 2076. Considering the 50 years left we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including professional charges.