With a long leasehold premises in Silsworth, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years left. Residents in Silsworth with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has fewer than eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with undertake Silsworth 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of unsuccessful discussions with the landlord of her first floor flat in Silsworth, Millie initiated the lease extension process as the 80 year deadline was fast advancing. The legal work was concluded in January 2006. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. R White was assigned a lease of a studio flat in Silsworth in November 1998. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Silsworth with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished in 2100. Given that there were 75 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last month we were e-mailed by Mrs Louise Simon , who moved into a first floor flat in Silsworth in March 1997. We are asked if we could approximate the price could be for a ninety year lease extension. Identical premises in Silsworth with an extended lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease finished on 25 August 2089. Given that there were 64 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.