The re-sale value of a leasehold property in Silvertown depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year threshold. Leasehold Reform legislation enables Silvertown qualifying lessees to an additional term of ninety years on top of the remaining term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Silvertown with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Silvertown can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 procuring Silvertown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Tommy, started to get close to the eighty-year mark with the lease on his studio apartment in Silvertown. Having bought his property 18 years previously, the unexpired term was of little importance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Tommy arranged for a lease extension just ahead of time last January. Tommy and the freeholder via the managing agents in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have escalated by at least £875.
In 2012 we were phoned by Mr P Campbell who, having completed a one bedroom apartment in Silvertown in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Silvertown with an extended lease were worth £183,600. The average ground rent payable was £65 collected monthly. The lease ended in 2082. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
An example of a Lease Extension decision for a Silvertown property 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 lease term was 69.77 years.