On the balance of probabilities where you own a flat in Maryland you actually own a long leasehold interest over your property
Leasehold residencies in Maryland with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
James owned a 2 bedroom apartment in Maryland on the market with a lease of a little over sixty years outstanding. James on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were James to exercise his statutory right. James procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were phoned by Mr W Anderson , who moved into a newly refurbished apartment in Maryland in April 1999. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Maryland with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished on 11 August 2102. Taking into account 76 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension case for a Maryland residence 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.