Unfortunately that a Slough residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Slough property prices.Once your lease gets to 85ish years, you should start thinking about 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 falls under 80 years - otherwise a higher amount will be due. Most leasehold owners in Slough will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Slough with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 procure 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 a wealth of experience 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.
Last October Ollie, came dangerously near to the eighty-year mark with the lease on his first floor apartment in Slough. In buying his home two decades ago, the unexpired term was of no importance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Ollie was able to extend his lease just ahead of time in June. Ollie and the freeholder eventually agreed on sum of £5,000 . If he had missed the deadline, the amount would have escalated by at least £1,075.
Last Christmas we were called by Ms Ella Cook , who moved into a ground floor flat in Slough in March 2008. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Slough with an extended lease were worth £267,600. The average ground rent payable was £65 collected yearly. The lease concluded on 14 March 2092. Having 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus expenses.
In 2012 we were called by Mrs Nicole Campbell who, having took over the lease of a one bedroom flat in Slough in April 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Slough with 100 year plus lease were in the region of £201,200. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2081. Given that there were 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.