With a domestic leasehold premises in Maryland, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years remaining. Residents in Maryland with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Maryland with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Maryland,the lease extension solicitors that we work with will always be willing 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.
Riley owned a studio flat in Maryland being sold with a lease of just over fifty eight years remaining. Riley on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2011 we were approached by Mr and Mrs. N Richardson who, having completed a recently refurbished apartment in Maryland in April 2000. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar properties in Maryland with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 collected annually. The lease finished on 24 June 2096. Given that there were 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension decision for a Maryland property 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 related to 1 flat.