Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Silsworth. Clearly, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Silsworth have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due consideration before delaying your Silsworth lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Silsworth leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Charlie owned a studio flat in Silsworth on the market with a lease of fraction over 61 years remaining. Charlie on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Charlie to exercise his statutory right. Charlie procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were called by Dr Emily Brooks who, having moved into a studio flat in Silsworth in February 2004. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar residencies in Silsworth with an extended lease were valued about £206,200. The average amount of ground rent was £60 collected annually. The lease elapsed on 13 August 2081. Considering the 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
Mr George Leroy bought a first floor apartment in Silsworth in August 1995. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Silsworth with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2101. Given that there were 76 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.