Why you should commence your Silverstone lease extension

Top reasons for lease extension now:

Increase your lease and increase your Silverstone property value

With a residential leasehold property in Silverstone, you are actually buying a right to live in a property for a set period 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 may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Silverstone with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once a lease has less than 80 years left, under the relevant legislation the landlord can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not issue a mortgage with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Silverstone lease extension solicitors or enfranchisement solicitors

Using our service gives you better control over the value of your Silverstone leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Silverstone Lease Extension Example Cases:

Bethan, Silverstone, Northamptonshire,

After lengthy negotiations with the landlord of her studio apartment in Silverstone, Bethan commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction completed in February 2010. The freeholder’s charges were negotiated to less than 500 GBP.

Silverstone case:

In 2010 we were phoned by Dr Rory Parker who, having was assigned a lease of a one bedroom flat in Silverstone in May 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Silverstone with a long lease were in the region of £300,000. The average ground rent payable was £50 billed yearly. The lease terminated on 18 August 2102. Taking into account 76 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.

Silverstone case:

Mr T Jones owned a garden apartment in Silverstone in April 1995. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative properties in Silverstone with 100 year plus lease were worth £257,800. The average amount of ground rent was £65 billed monthly. The lease finished on 10 March 2091. Considering the 65 years outstanding we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.