Slough leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Slough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Slough you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Slough with in excess of one hundred years outstanding 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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 |
Lease extensions in Slough can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
16 months ago Nathaniel, started to get close to the eighty-year mark with the lease on his first floor apartment in Slough. In buying his home 19 years previously, the lease term was of no bearing. Luckily, he noticed he needed to take steps soon on a lease extension. Nathaniel was able to extend his lease just in the nick of time in January. Nathaniel and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the sum would have gone up by at least £1,025.
Last September we were called by Dr O Leroy , who completed a purpose-built flat in Slough in February 1998. The question was if we could approximate the price would be to prolong the lease by 90 years. Similar residencies in Slough with a long lease were valued about £191,400. The mid-range amount of ground rent was £55 billed annually. The lease expired in 2080. Given that there were 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of legals.
Mr D Gray owned a ground floor apartment in Slough in September 1995. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable flats in Slough with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 13 August 2100. Taking into account 74 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.