There is no doubt about it a leasehold property in Silverton is a wasting asset as a result of the diminishing lease term. If the residual term has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Silverton will meet the qualifying criteria; however a conveyancer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Silverton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Silverton valuers.
Off the back of lengthy negotiations with the landlord of her first floor flat in Silverton, Maisie started the lease extension process as the 80 year deadline was rapidly approaching. The lease extension completed in March 2007. The landlord’s charges were negotiated to about four hundred GBP.
Last month we were e-mailed by Ms Jasmine Parker , who completed a ground floor apartment in Silverton in July 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Identical flats in Silverton with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed on 13 May 2096. Having 71 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
In 2010 we were phoned by Mr and Mrs. B Turner who, having took over the lease of a newly refurbished apartment in Silverton in August 2008. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Silverton with 100 year plus lease were valued about £225,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished in 2085. Taking into account 60 years as a residual term we approximated the premium to the landlord to extend the lease to be within £25,700 and £29,600 plus professional charges.