The nearer a residential lease in Silverdale nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Silverdale will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Silverdale leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Reuben, started to get close to the eighty-year mark with the lease on his basement apartment in Silverdale. In buying his property twenty years previously, the unexpired term was of no bearing. Luckily, he noticed he needed to take action soon on a lease extension. Reuben arranged for a lease extension just ahead of time in January. Reuben and the freeholder subsequently settled on the final figure of £5,000 . If the lease had dipped lower than eighty years, the premium would have gone up by at least £875.
In 2009 we were contacted by Mrs Poppy King who, having took over the lease of a studio apartment in Silverdale in April 2003. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Silverdale with an extended lease were valued about £280,000. The average ground rent payable was £55 invoiced annually. The lease concluded in 2104. Considering the 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
Last month we were phoned by Dr M Gunderson , who completed a one bedroom apartment in Silverdale in July 2004. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable residencies in Silverdale with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2084. Considering the 58 years outstanding we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.