When it comes to domestic leasehold property in Silverdale, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Silverdale with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below eighty years left, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Silverdale with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Using our service will provide you enhanced control over the value of your Silverdale leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.
Half a year ago Ollie, started to get close to the eighty-year threshold with the lease on his garden flat in Silverdale. Having purchased his property twenty years ago, the lease term was of little importance. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Ollie extended the lease just under the wire in January. Ollie and the freeholder via the management company subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £1,100.
In 2011 we were approached by Mr and Mrs. C Phillips who, having bought a ground floor flat in Silverdale in November 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Silverdale with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected monthly. The lease lapsed in 2101. Considering the 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2011 we were contacted by Mrs Grace Howard who, having took over the lease of a recently refurbished flat in Silverdale in May 2006. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Silverdale with an extended lease were in the region of £173,800. The mid-range ground rent payable was £60 billed monthly. The lease concluded in 2081. Considering the 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.