The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Maidenhead can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Maidenhead lease extension. Shelving the costs today simply increases the price you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 75 years plus the term of the mortgage at the outset 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. |
| 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 |
Retaining our service will provide you better control over the value of your Maidenhead leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her one bedroom flat in Maidenhead, Kate initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension completed in May 2008. The freeholder’s fees were negotiated to a tad over 550 pounds.
Last Winter we were phoned by Mr Noah Roberts , who purchased a purpose-built flat in Maidenhead in May 2004. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical properties in Maidenhead with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2101. Taking into account 75 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Last year we were called by Mr and Mrs. G Bennett , who completed a recently refurbished apartment in Maidenhead in July 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative premises in Maidenhead with a long lease were in the region of £168,800. The average amount of ground rent was £60 invoiced quarterly. The lease terminated in 2081. Given that there were 55 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.