On the balance of probabilities if you own a flat in Silverdale you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Silverdale leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a studio apartment in Silverdale being sold with a lease of fraction over 59 years unexpired. Blake informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. P Walker was assigned a lease of a studio flat in Silverdale in June 2008. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Silverdale with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 billed every twelve months. The lease expiry date was on 18 April 2082. Considering the 56 years left we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 plus fees.
In 2010 we were contacted by Mr and Mrs. A Bell who, having took over the lease of a first floor apartment in Silverdale in March 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Silverdale with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2093. Having 67 years unexpired we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including fees.