Unfortunately that a Maidenhead residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Maidenhead property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most flat owners in Maidenhead will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Maidenhead leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Aaron, came critically near to the 80-year mark with the lease on his one bedroom flat in Maidenhead. Having bought his home 18 years previously, the length of the lease was of little relevance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Aaron was able to extend his lease just under the wire in August. Aaron and the freeholder ultimately settled on sum of £5,000 . If he not met the deadline, the figure would have escalated by at least £1,125.
In 2014 we were contacted by Mr B Mitchell who, having was assigned a lease of a one bedroom flat in Maidenhead in September 2005. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Identical homes in Maidenhead with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded on 21 March 2074. Having 50 years unexpired we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus legals.
In 2009 we were contacted by Mr and Mrs. V Lee who, having was assigned a lease of a purpose-built flat in Maidenhead in September 1996. The question was if we could estimate the price could be for a 90 year lease extension. Identical premises in Maidenhead with an extended lease were valued around £203,200. The average ground rent payable was £65 invoiced yearly. The lease ran out on 27 August 2085. Given that there were 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus legals.