There is no doubt about it a leasehold property in Slough is a wasting asset as a result of the diminishing lease term. If the lease has, over 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Slough will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Slough with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Chelsea Building Society | 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Slough,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Slough valuers.
Max owned a conversion flat in Slough being sold with a lease of fraction over 59 years left. Max informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Dr K Dupont bought a one bedroom flat in Slough in May 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Slough with an extended lease were worth £235,600. The average ground rent payable was £60 invoiced quarterly. The lease ran out on 20 March 2088. Taking into account 62 years outstanding we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.
Last Spring we were contacted by Mrs Rachael Hernández , who was assigned a lease of a studio apartment in Slough in June 2006. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical flats in Slough with a long lease were worth £174,200. The average ground rent payable was £55 invoiced annually. The lease elapsed on 5 September 2077. Having 51 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.