When it comes to domestic leasehold premises in Silverstone, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Silverstone with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has less than eighty years left, under the relevant statute the landlord can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Silverstone with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest 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. |
| 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. |
| 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 |
| 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. |
Lease extensions in Silverstone can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Silverstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Samuel, came precariously near to the eighty-year mark with the lease on his two bedroom flat in Silverstone. In buying his property two decades ago, the length of the lease was of no concern. Fortunately, he recognised he needed to take action soon on a lease extension. Samuel extended the lease just under the wire in June. Samuel and the freeholder via the management company in the end settled on sum of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,100.
Last Spring we were approach by Dr Kai Campbell , who acquired a basement apartment in Silverstone in August 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar residencies in Silverstone with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2097. Having 71 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2012 we were phoned by Mr B Hill who, having purchased a garden flat in Silverstone in March 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Silverstone with a long lease were worth £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded in 2086. Considering the 60 years left we estimated the premium to the landlord for the lease extension to be within £25,700 and £29,600 not including costs.