When it comes to domestic leasehold premises in Maidenhead, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Maidenhead with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Maidenhead leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Benjamin, started to get near to the eighty-year mark with the lease on his first floor apartment in Maidenhead. Having bought his home 19 years ago, the length of the lease was of no concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Benjamin was able to extend his lease just under the wire in April. Benjamin and the freeholder in the end settled on an amount of £5,500 . If the lease had descended to less than eighty years, the figure would have gone up by at least £950.
Last Winter we were contacted by Mr Adam Roux , who was assigned a lease of a basement flat in Maidenhead in October 2011. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Maidenhead with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed on 5 October 2097. Taking into account 72 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2013 we were approached by Mr and Mrs. M Scott who, having was assigned a lease of a one bedroom flat in Maidenhead in July 2012. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative flats in Maidenhead with a long lease were valued about £256,600. The average ground rent payable was £60 invoiced every twelve months. The lease expired in 2077. Having 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £41,800 and £48,400 plus fees.