Slough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes 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 must see if your lease has between 70 and ninety years left. There are compelling reasons why a Slough flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Slough with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 experience and the close ties they enjoy with Slough valuers.
Last Spring Arthur, started to get near to the 80-year mark with the lease on his leasehold apartment in Slough. Having bought his home twenty years ago, the lease term was of little relevance. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Arthur arranged for a lease extension just under the wire last July. Arthur and the freeholder in the end agreed on the final figure of £5,000 . If the lease had slipped below eighty years, the amount would have increased by at least £875.
In 2009 we were approached by Dr Ryan Mitchell who, having bought a purpose-built flat in Slough in April 2006. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Slough with 100 year plus lease were valued about £201,200. The mid-range amount of ground rent was £55 billed monthly. The lease termination date was on 9 May 2081. Given that there were 56 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.
Last Christmas we were phoned by Mr and Mrs. K López , who moved into a studio apartment in Slough in September 2005. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparative flats in Slough with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 18 May 2101. Taking into account 76 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.