Sileby 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 becomes more expensive. Legislation has been in place for sometime now allowing qualifying Sileby residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Sileby you would be well advised to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with undertake Sileby 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.
After protracted negotiations with the landlord of her basement apartment in Sileby, Abigail started the lease extension process as the 80 year mark was rapidly nearing. The lease extension was finalised in January 2010. The landlord’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. P Lee , who owned a studio apartment in Sileby in July 2006. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar properties in Sileby with 100 year plus lease were worth £198,400. The mid-range ground rent payable was £65 billed annually. The lease lapsed in 2085. Given that there were 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.
Last July we were contacted by Mrs W Thompson , who purchased a basement apartment in Sileby in July 2010. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Similar homes in Sileby with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease elapsed on 23 July 2096. Taking into account 70 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.