The value of Maidenhead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than eighty years
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased 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 conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a studio apartment in Maidenhead on the market with a lease of a few days over 59 years unexpired. Elijah informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2012 we were e-mailed by Dr D White who, having acquired a garden flat in Maidenhead in August 2001. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical premises in Maidenhead with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded in 2098. Having 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were e-mailed by Ms Katherine James who, having bought a first floor apartment in Maidenhead in September 2001. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical flats in Maidenhead with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 4 April 2078. Considering the 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including legals.