It’s an underpublicised truth that a Slough residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Slough property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Slough will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 surveyor 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 dealing with Slough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a 2 bedroom apartment in Slough on the market with a lease of fraction over fifty eight years remaining. Samuel informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and secured an acceptable resolution informally and sell the flat.
Mr Omar Turner bought a garden flat in Slough in January 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Slough with an extended lease were valued about £184,000. The average amount of ground rent was £55 collected annually. The lease ended in 2078. Taking into account 53 years unexpired we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
In 2010 we were e-mailed by Dr Lily Peterson who, having bought a one bedroom flat in Slough in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Slough with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced monthly. The lease termination date was on 16 January 2098. Taking into account 73 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.