The closer a domestic lease in Slough gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Slough will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Slough,the lease extension lawyers that we work with will always be prepared 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.
Last Autumn Rory, came critically near to the 80-year threshold with the lease on his leasehold apartment in Slough. Having purchased his property twenty years previously, the unexpired term was of little concern. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Rory was able to extend his lease at the eleventh hour in September. Rory and the freeholder via the management company in the end settled on an amount of £6,000 . If the lease had descended to less than 80 years, the amount would have gone up by at least £1,000.
Dr Niamh Lee bought a one bedroom flat in Slough in March 2000. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable properties in Slough with an extended lease were valued about £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease finished on 11 April 2084. Given that there were 58 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.
Mr Felix Bennett owned a basement flat in Slough in March 2000. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar residencies in Slough with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed monthly. The lease terminated in 2104. Given that there were 78 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.