Main reasons to start your Maryland lease extension

Top reasons for lease extension now:

Increase your lease and increase your Maryland property value

Maryland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Maryland residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Maryland you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in Maryland with more than one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to issue a mortgage with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have at least 60 if not 70 years left at the expiry of the mortgage. As a number of flats in Maryland were built in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

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

The lawyers that we work with handle 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 conveyancer we work with provide it.

Maryland Lease Extension Case Studies:

Phoebe, Maryland, London,

In the wake of 9 months of unsuccessful correspondence with the landlord of her first floor flat in Maryland, Phoebe initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction was concluded in August 2011. The freeholder’s costs were negotiated to slightly above five hundred pounds.

Maryland case:

Mr Dylan Morel acquired a studio apartment in Maryland in March 1999. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparative residencies in Maryland with an extended lease were valued around £280,000. The average amount of ground rent was £45 billed every twelve months. The lease terminated on 21 February 2095. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.