On the balance of probabilities where you own a flat in Maidenhead you actually own a long leasehold interest over your property
Leasehold premises in Maidenhead with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | 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. |
Using our service gives you better control over the value of your Maidenhead leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the landlord of her one bedroom apartment in Maidenhead, Yasmin initiated the lease extension process as the 80 year deadline was rapidly nearing. The legal work completed in February 2014. The landlord’s costs were restricted to slightly above 500 GBP.
In 2014 we were phoned by Mr and Mrs. A Mercier who, having bought a first floor apartment in Maidenhead in February 2011. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar properties in Maidenhead with a long lease were valued around £285,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 23 October 2105. Considering the 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
In 2014 we were called by Ms Phoebe Hall who, having acquired a one bedroom flat in Maidenhead in May 1998. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar residencies in Maidenhead with a long lease were valued about £193,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out on 2 July 2085. Taking into account 59 years left we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.