With a residential leasehold property in Slough, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Residents in Slough with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When the lease term has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Yorkshire 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. |
Lease extensions in Slough can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 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.
Trailing unsuccessful discussions with the landlord of her garden apartment in Slough, Georgia started the lease extension process as the eighty year threshold was rapidly advancing. The lease extension completed in May 2007. The landlord’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. N King , who completed a studio apartment in Slough in January 2003. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Slough with 100 year plus lease were worth £250,400. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 15 August 2090. Given that there were 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
In 2013 we were approached by Mr Ryan González who, having acquired a studio apartment in Slough in April 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Slough with 100 year plus lease were in the region of £184,000. The average ground rent payable was £55 collected per annum. The lease lapsed in 2079. Taking into account 53 years left we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.