On the balance of probabilities if you own a flat in Silverstone you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Silverstone 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.
Following lengthy correspondence with the freeholder of her basement flat in Silverstone, Maisie started the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work was concluded in September 2009. The freeholder’s fees were negotiated to about 600 pounds.
Last Summer we were e-mailed by Mr and Mrs. L Roberts , who bought a purpose-built apartment in Silverstone in October 2012. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative properties in Silverstone with 100 year plus lease were worth £166,800. The average ground rent payable was £50 collected every twelve months. The lease concluded in 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.
Mr and Mrs. V Hernández purchased a first floor flat in Silverstone in March 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Silverstone with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease ended in 2095. Taking into account 70 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.