There is no doubt about it a leasehold property in Slough is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Slough will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Slough with more than one hundred years outstanding on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Slough leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Jack, started to get close to the 80-year mark with the lease on his leasehold flat in Slough. In buying his home twenty years previously, the unexpired term was of minimal bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Jack was able to extend his lease at the eleventh hour in April. Jack and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had dipped to less than eighty years, the figure would have increased by a minimum £975.
Last Christmas we were approach by Mr Harrison Vincent , who moved into a newly refurbished apartment in Slough in May 2005. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar properties in Slough with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed in 2103. Taking into account 77 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Last month we were called by Mr and Mrs. V Campbell , who acquired a basement apartment in Slough in November 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Slough with a long lease were valued about £260,200. The mid-range ground rent payable was £65 collected quarterly. The lease end date was on 15 April 2092. Given that there were 66 years outstanding we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of fees.