Unfortunately that a Slough residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Slough property market.Where your lease has approximately ninety years left, you need to 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 dips lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Slough will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Slough with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you enhanced control over the value of your Slough leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold proprietor of a studio apartment in Slough being marketed with a lease of just over 72 years outstanding. Henry on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Spring we were called by Mr R Miller , who moved into a ground floor flat in Slough in February 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Slough with an extended lease were valued around £260,200. The average ground rent payable was £65 collected per annum. The lease lapsed in 2092. Considering the 66 years unexpired we estimated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including legals.
In 2010 we were called by Mr and Mrs. S André who, having completed a basement apartment in Slough in January 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Slough with 100 year plus lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 23 May 2081. Given that there were 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.