The re-sale value of a leasehold property in Silvertown depends on how long the lease has remaining. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be concluded prior to the eighty year cut off point. Statute enables Silvertown qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Silvertown with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
Retaining our service will provide you enhanced control over the value of your Silvertown leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Rory, started to get close to the 80-year mark with the lease on his first floor apartment in Silvertown. Having bought his property 19 years previously, the lease term was of minimal bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Rory extended the lease just under the wire in August. Rory and the landlord in the end settled on a premium of £5,000 . If the lease had slid lower than eighty years, the amount would have become more exhorbitant by a minimum £1,150.
In 2009 we were contacted by Mrs L Lefèvre who, having moved into a one bedroom flat in Silvertown in February 1998. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Silvertown with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2103. Having 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
An example of a Lease Extension case for a Silvertown premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The unexpired term as at the valuation date was 69.77 years.