Silverton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Silverton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Silverton you would be well advised to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold 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 all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Silverton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 dealing with Silverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her one bedroom flat in Silverton, Gemma initiated the lease extension process as the eighty year mark was rapidly coming. The transaction was concluded in September 2007. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Dr Max Jones who, having took over the lease of a purpose-built apartment in Silverton in January 1999. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable premises in Silverton with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed annually. The lease ended in 2077. Considering the 52 years unexpired we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
Ms Naomi Leroy took over the lease of a one bedroom flat in Silverton in March 2006. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparable flats in Silverton with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 15 November 2097. Having 72 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.