Maidenhead leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Maidenhead will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Maidenhead with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Maidenhead,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maidenhead valuers.
Sebastian was the the leasehold owner of a high value flat in Maidenhead being marketed with a lease of just over 61 years left. Sebastian informally approached his freeholder a well known Bristol-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 initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2014 we were contacted by Dr Ella Lambert who, having completed a ground floor apartment in Maidenhead in August 2012. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable properties in Maidenhead with an extended lease were worth £250,000. The average amount of ground rent was £50 billed annually. The lease concluded on 19 November 2094. Taking into account 69 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
In 2012 we were phoned by Mr and Mrs. M Jackson who, having moved into a ground floor apartment in Maidenhead in January 1995. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical residencies in Maidenhead with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced quarterly. The lease terminated on 2 January 2105. Having 80 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.