Maidenhead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Maidenhead residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Maidenhead you would be well advised to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Maidenhead with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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.
Subsequent to unsuccessful correspondence with the landlord of her leasehold apartment in Maidenhead, Molly commenced the lease extension process as the 80 year threshold was rapidly nearing. The transaction completed in February 2011. The landlord’s fees were restricted to about six hundred pounds.
In 2012 we were e-mailed by Mr and Mrs. J Thomas who, having took over the lease of a studio flat in Maidenhead in November 1996. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar premises in Maidenhead with an extended lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease lapsed on 25 July 2082. Having 57 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
Last January we were e-mailed by Mr Alexander Cooper , who completed a basement apartment in Maidenhead in September 1998. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar flats in Maidenhead with 100 year plus lease were worth £245,000. The average ground rent payable was £45 billed yearly. The lease concluded in 2093. Taking into account 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.