Slough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Slough enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Slough you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Slough with over one hundred years remaining 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Slough can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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 lengthy negotiations with the freeholder of her one bedroom apartment in Slough, Isabella started the lease extension process as the 80 year mark was rapidly nearing. The legal work was finalised in October 2012. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. N Wilson who, having took over the lease of a one bedroom flat in Slough in November 2001. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Slough with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 collected yearly. The lease came to a finish in 2085. Given that there were 60 years left we estimated the premium to the freeholder for the lease extension to be between £25,700 and £29,600 not including expenses.
Last Spring we were called by Mrs Rosie Patel , who was assigned a lease of a ground floor apartment in Slough in January 2011. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable homes in Slough with an extended lease were in the region of £210,000. The average ground rent payable was £50 collected every twelve months. The lease expired on 26 January 2105. Having 80 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.