The nearer a domestic lease in Maidenhead gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Maidenhead will qualify for this right; that being said a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake Maidenhead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of lengthy correspondence with the landlord of her purpose-built apartment in Maidenhead, Tia commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction was finalised in June 2010. The landlord’s charges were negotiated to less than 550 GBP.
Last Spring we were called by Mrs Lucy Simon , who moved into a garden flat in Maidenhead in June 2003. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical flats in Maidenhead with an extended lease were valued around £186,000. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2084. Having 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of costs.
Last month we were called by Mr and Mrs. G Flores , who owned a purpose-built apartment in Maidenhead in August 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Maidenhead with a long lease were valued about £250,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2095. Taking into account 69 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.