There is no doubt about it a leasehold property in Slough is a wasting asset as a result of the shortening lease. If the residual term has, over 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Slough will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Slough with over 100 years unexpired on the lease are sometimes 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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancers that we work with handle Slough lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Toby, came seriously near to the eighty-year threshold with the lease on his two bedroom apartment in Slough. In buying his property twenty years previously, the unexpired term was of little importance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Toby was able to extend his lease just ahead of time in May. Toby and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had descended lower than eighty years, the premium would have gone up by a minimum £1,050.
Mr and Mrs. O Patel purchased a first floor apartment in Slough in March 2002. The question was if we could estimate the premium could be to extend the lease by an additional years. Similar homes in Slough with a long lease were in the region of £198,800. The average amount of ground rent was £55 collected every twelve months. The lease concluded in 2081. Considering the 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
In 2009 we were contacted by Mr and Mrs. V Bertrand who, having took over the lease of a purpose-built flat in Slough in August 2002. The question was if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Slough with 100 year plus lease were valued about £295,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish on 12 February 2101. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.