Silverdale leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be payable. Leasehold owners in Silverdale will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Silverdale with over 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Silverdale 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 conveyancing solicitor we work with provide it.
In recent months Lucas, came precariously near to the eighty-year threshold with the lease on his one bedroom flat in Silverdale. Having purchased his flat two decades ago, the unexpired term was of minimal concern. Thankfully, he realised he would imminently be paying an inflated amount for Extending the lease. Lucas was able to extend his lease at the eleventh hour last July. Lucas and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £1,050.
Last month we were approach by Dr Jade Clarke , who acquired a garden apartment in Silverdale in March 2008. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparable homes in Silverdale with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed on 25 June 2079. Having 54 years unexpired we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Last Winter we were e-mailed by Dr B Robinson , who was assigned a lease of a one bedroom apartment in Silverdale in January 2011. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Silverdale with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended in 2090. Taking into account 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.