For anyone whose Maidenhead flat is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold residencies in Maidenhead with over one hundred years unexpired 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Maidenhead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maidenhead valuers.
Samuel was the the leasehold proprietor of a high value flat in Maidenhead being sold with a lease of a little over 59 years left. Samuel informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. H Wright , who bought a ground floor flat in Maidenhead in October 2011. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Maidenhead with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 14 July 2088. Taking into account 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus fees.
Last Winter we were approach by Mrs T Alexander , who moved into a newly refurbished flat in Maidenhead in October 2007. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Maidenhead with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed per annum. The lease finished on 9 April 2099. Considering the 73 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.