It’s an underpublicised truth that a Sileby residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Sileby property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Sileby will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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.
In the wake of eight months of unsuccessful discussions with the freeholder of her basement apartment in Sileby, Natalie initiated the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in September 2007. The freeholder’s costs were kept to an absolute minimum.
Last May we were approach by Dr J Cox , who owned a purpose-built apartment in Sileby in September 2006. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical properties in Sileby with a long lease were valued about £265,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated on 19 January 2099. Given that there were 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
Last Christmas we were approach by Mr G Roux , who was assigned a lease of a recently refurbished apartment in Sileby in March 2001. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Sileby with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease came to a finish on 8 March 2079. Given that there were 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus costs.