Maidenhead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Maidenhead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Maidenhead you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The lawyers that we work with procure Maidenhead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following unsuccessful correspondence with the landlord of her two bedroom flat in Maidenhead, Mia commenced the lease extension process as the 80 year deadline was fast coming. The transaction completed in September 2005. The freeholder’s costs were restricted to about 650 pounds.
Last Summer we were e-mailed by Mr Caleb Campbell , who moved into a studio apartment in Maidenhead in January 2000. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Maidenhead with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished in 2089. Having 63 years outstanding we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of fees.
Last Christmas we were approach by Mr and Mrs. V Simon , who completed a first floor apartment in Maidenhead in June 1995. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical residencies in Maidenhead with a long lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2100. Given that there were 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.