The re-sale value of a leasehold property in Maidenbower depends on how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year threshold. Statute enables Maidenbower qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Maidenbower with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you increased 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 wish 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.
Last year Evan, started to get near to the 80-year threshold with the lease on his leasehold flat in Maidenbower. Having bought his home 18 years ago, the length of the lease was of no concern. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Evan extended the lease just under the wire in August. Evan and the landlord ultimately agreed on a premium of £5,500 . If he not met the deadline, the sum would have increased by at least £875.
Mr Dylan Wilson took over the lease of a studio flat in Maidenbower in May 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Maidenbower with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected per annum. The lease ended on 8 May 2094. Taking into account 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2013 we were phoned by Ms V Rodríguez who, having bought a first floor flat in Maidenbower in November 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Maidenbower with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 billed monthly. The lease elapsed on 3 August 2083. Considering the 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.