When it comes to residential leasehold premises in Silsworth, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Anyone in Silsworth with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under eighty years left, under the current statute the freeholder can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Silsworth can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Silsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her basement apartment in Silsworth, Phoebe commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was concluded in October 2011. The freeholder’s costs were negotiated to a tad over 500 GBP.
Last July we were e-mailed by Mr and Mrs. H Sharif , who completed a basement apartment in Silsworth in July 2008. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Silsworth with a long lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 28 September 2090. Taking into account 64 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.
Dr I Davies owned a basement apartment in Silsworth in November 2002. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Silsworth with a long lease were in the region of £184,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish on 23 March 2079. Having 53 years outstanding we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.