There is no doubt about it a leasehold property in Slough is a wasting asset as a result of the shortening lease. Where the lease has, over one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Slough will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 landlord in Slough,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Slough valuers.
Off the back of protracted discussions with the freeholder of her one bedroom flat in Slough, Rhiannon started the lease extension process just as the lease was nearing the critical eighty-year threshold. The legal work was finalised in September 2010. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were contacted by Dr Tommy Cox , who purchased a one bedroom flat in Slough in August 2007. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Slough with a long lease were valued around £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed on 7 June 2086. Given that there were 61 years unexpired we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus costs.
Dr D Cooper completed a garden flat in Slough in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Slough with 100 year plus lease were valued around £166,800. The average ground rent payable was £50 collected every twelve months. The lease concluded in 2075. Taking into account 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.