The market value of Maidenhead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
Leasehold properties in Maidenhead with over 100 years left on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Maidenhead leasehold, as your property will be more valuable and saleable in terms 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.
Kian owned a conversion apartment in Maidenhead being marketed with a lease of a little over 61 years left. Kian on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and secured satisfactory deal without going to tribunal and readily saleable.
In 2013 we were approached by Mr J Bonnet who, having took over the lease of a one bedroom apartment in Maidenhead in April 2011. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Maidenhead with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed in 2080. Considering the 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
In 2013 we were approached by Mrs P Turner who, having took over the lease of a recently refurbished flat in Maidenhead in May 1996. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Maidenhead with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected yearly. The lease lapsed on 18 March 2091. Considering the 65 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.