With a domestic leasehold premises in Slough, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Slough with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the relevant statute the landlord can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Slough with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Slough,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Slough valuers.
Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Slough, Courtney started the lease extension process as the eighty year threshold was swiftly nearing. The legal work was concluded in March 2007. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Mr and Mrs. L Anderson , who took over the lease of a ground floor apartment in Slough in March 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative residencies in Slough with an extended lease were valued around £208,600. The average amount of ground rent was £60 billed monthly. The lease concluded in 2082. Taking into account 57 years unexpired we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Last month we were contacted by Mr and Mrs. U Baker , who moved into a first floor flat in Slough in November 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Identical homes in Slough with a long lease were worth £200,000. The average ground rent payable was £50 billed yearly. The lease ended in 2102. Taking into account 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.