As the length of the unexpired term of a Maidenhead domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Maidenhead will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Maidenhead with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Maidenhead leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael owned a studio flat in Maidenhead on the market with a lease of a few days over sixty years left. Michael informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mrs Mia Carter took over the lease of a basement apartment in Maidenhead in January 1998. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparable flats in Maidenhead with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2101. Given that there were 76 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
In 2013 we were e-mailed by Mr A Allen who, having moved into a one bedroom apartment in Maidenhead in September 2000. The question was if we could estimate the premium could be to prolong the lease by ninety years. Identical flats in Maidenhead with a long lease were valued about £176,200. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed on 15 August 2081. Taking into account 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.