The re-sale value of a leasehold property in Silverdale depends on how long the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised in advance of the eighty year mark. Leasehold Reform legislation enables Silverdale qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Silverdale with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Silverdale leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy negotiations with the freeholder of her leasehold flat in Silverdale, Lily initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was concluded in October 2012. The landlord’s charges were restricted to approximately 550 GBP.
In 2012 we were contacted by Mr and Mrs. Y Bertrand who, having purchased a studio flat in Silverdale in September 2004. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Silverdale with an extended lease were in the region of £285,000. The average amount of ground rent was £55 collected yearly. The lease concluded on 19 August 2106. Taking into account 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2012 we were e-mailed by Dr Felix Lambert who, having moved into a studio apartment in Silverdale in June 2000. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative flats in Silverdale with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed per annum. The lease finished on 23 August 2086. Considering the 60 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.