Why you should start your Maidenhead lease extension

Why you should commence your Maidenhead lease extension today:

A Maidenhead leasehold property depreciates with the years remaining on the lease.

Maidenhead leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Maidenhead will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Maidenhead with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will no doubt encounter difficulties in obtaining a mortgage and this could result in your Maidenhead property being difficult to dispose of or refinance.

What makes us experts in Maidenhead lease extensions?

Retaining our service gives you increased control over the value of your Maidenhead leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Maidenhead Lease Extension Example Cases:

James, Maidenhead, Berkshire,

James owned a 2 bedroom flat in Maidenhead on the market with a lease of fraction over fifty eight years unexpired. James on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend 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 James to exercise his statutory right. James obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Maidenhead case:

Mr R Parker was assigned a lease of a first floor apartment in Maidenhead in July 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable flats in Maidenhead with a long lease were in the region of £235,200. The average ground rent payable was £45 billed monthly. The lease ended on 24 July 2092. Having 66 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.

Maidenhead case:

Dr Sarah Miller completed a studio apartment in Maidenhead in June 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Maidenhead with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended on 14 October 2103. Considering the 77 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.