Unfortunately that a Maidenhead residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Maidenhead property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Maidenhead will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives 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.
Omar was the the leasehold owner of a studio flat in Maidenhead being marketed with a lease of fraction over fifty eight years unexpired. Omar informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Ms G Bailey owned a newly refurbished apartment in Maidenhead in September 2008. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Maidenhead with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced annually. The lease ran out on 13 February 2105. Considering the 80 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2010 we were e-mailed by Mr and Mrs. E Morgan who, having bought a studio apartment in Maidenhead in March 2005. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Maidenhead with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease ended in 2085. Considering the 60 years left we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.