On the balance of probabilities where you own a flat in Maryport you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Maryport,the lease extension lawyers 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 Maryport valuers.
Aaron owned a high value flat in Maryport on the market with a lease of a few days over fifty eight years outstanding. Aaron informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2010 we were e-mailed by Ms Yasmin Rivera who, having purchased a basement flat in Maryport in February 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical properties in Maryport with a long lease were in the region of £250,400. The average amount of ground rent was £65 billed monthly. The lease concluded in 2089. Given that there were 64 years left we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including legals.
Dr Elizabeth Mason bought a newly refurbished flat in Maryport in May 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar flats in Maryport with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired on 19 February 2078. Taking into account 53 years outstanding we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.