For those whose Maidenhead home is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 landlord in Maidenhead,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Maidenhead valuers.
Omar owned a conversion apartment in Maidenhead on the market with a lease of a few days over 61 years outstanding. Omar on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2012 we were contacted by Mr Jason Morris who, having purchased a first floor flat in Maidenhead in June 2008. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative homes in Maidenhead with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 invoiced annually. The lease lapsed on 10 July 2086. Having 61 years outstanding we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.
Last Summer we were approach by Mr K Williams , who moved into a one bedroom apartment in Maidenhead in June 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Maidenhead with a long lease were in the region of £260,000. The average ground rent payable was £50 invoiced yearly. The lease termination date was on 8 July 2097. Given that there were 72 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.