Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Slough. Clearly, the term of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Slough have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful consideration before delaying your Slough lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Slough can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Slough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Blake, started to get close to the 80-year mark with the lease on his ground floor flat in Slough. In buying his flat 18 years ago, the length of the lease was of no concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Blake arranged for a lease extension at the eleventh hour in January. Blake and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had dipped below 80 years, the sum would have escalated by at least £900.
In 2011 we were approached by Dr H Patel who, having owned a one bedroom flat in Slough in January 2000. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Slough with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 billed monthly. The lease concluded on 23 March 2077. Considering the 51 years left we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.
In 2010 we were e-mailed by Mr and Mrs. O Johnson who, having owned a newly refurbished apartment in Slough in February 1996. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Slough with an extended lease were worth £285,000. The average amount of ground rent was £45 collected monthly. The lease ran out on 12 November 2097. Taking into account 71 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.