On the balance of probabilities where you own a flat in Slough you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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 are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Slough leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a studio apartment in Slough being marketed with a lease of a few days over 72 years outstanding. Oliver on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and secured an acceptable resolution informally and sell the flat.
Mr W Bailey completed a basement apartment in Slough in November 2007. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Slough with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2096. Taking into account 70 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Dr T Moreau purchased a ground floor flat in Slough in November 1998. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical premises in Slough with a long lease were worth £218,400. The average ground rent payable was £60 collected every twelve months. The lease concluded on 11 June 2085. Considering the 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.