Why you should start your Maidenhead lease extension

Top reasons for lease extension now:

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

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.

An extended lease is almost the same value as a freehold

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.

Lending institutions may not issue a mortgage on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Maidenhead lease extension solicitors or enfranchisement solicitors

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.

Maidenhead Lease Extension Example Cases:

Samuel, Maidenhead, Berkshire,

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.

Maidenhead case:

Last Spring we were called by Mr and Mrs. H Wright , who bought a ground floor flat in Maidenhead in October 2007. 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.

Maidenhead case:

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.