Main reasons to start your Silsworth lease extension

Main reasons to commence your Silsworth lease extension today:

A Silsworth lease depreciates with the years remaining on the lease.

With a residential leasehold premises in Silsworth, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Silsworth with a lease approaching 81 years left should seriously consider extending it sooner than later. When a lease has less than 80 years outstanding, under the relevant statute the freeholder can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

Silsworth property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not issue a mortgage with a short lease

Mortgage companies are making their criteria more stringent and a meaningful number now want flats to have at least 60 if not 70 years remaining at the end of the mortgage. Given that a number of flats in Silsworth were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Silsworth lease extensions?

The lawyers that we work with handle 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 lawyer we work with provide it.

Silsworth Lease Extension Case Studies:

Nathan, Silsworth, Tyne And Wear,

Nathan was the the leasehold owner of a high value flat in Silsworth being sold with a lease of a few days over 72 years outstanding. Nathan on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert advice and secured satisfactory resolution informally and sell the flat.

Silsworth case:

Last Autumn we were e-mailed by Dr Jake Harris , who completed a studio flat in Silsworth in March 2003. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative flats in Silsworth with an extended lease were in the region of £280,000. The average amount of ground rent was £45 billed annually. The lease expired in 2097. Having 71 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.

Silsworth case:

Dr V Brown bought a one bedroom flat in Silsworth in May 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Silsworth with a long lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated on 25 August 2086. Given that there were 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of legals.