The 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 materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 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 |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Maidenhead,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maidenhead valuers.
Felix owned a conversion apartment in Maidenhead being marketed with a lease of just over 59 years unexpired. Felix informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and secured satisfactory deal without going to tribunal and sell the flat.
In 2011 we were e-mailed by Mr and Mrs. Y Mason who, having purchased a one bedroom flat in Maidenhead in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Maidenhead with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed in 2104. Taking into account 78 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2009 we were called by Mr and Mrs. W Rogers who, having completed a one bedroom apartment in Maidenhead in June 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Maidenhead with 100 year plus lease were in the region of £186,000. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated in 2084. Having 58 years left we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.