With a domestic leasehold premises in Maidenbower, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Maidenbower with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Maidenbower with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. 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 will provide you enhanced control over the value of your Maidenbower leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a conversion flat in Maidenbower being sold with a lease of a little over 61 years unexpired. Andrew informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. D Bennett moved into a studio apartment in Maidenbower in March 2010. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical premises in Maidenbower with an extended lease were valued around £210,000. The average ground rent payable was £50 billed yearly. The lease concluded on 4 May 2106. Having 80 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
Mr Ben Brown acquired a one bedroom flat in Maidenbower in February 2004. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical residencies in Maidenbower with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended on 3 June 2095. Having 69 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.