The closer a domestic lease in Silverstone gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Silverstone will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Silverstone with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold owner of a conversion flat in Silverstone on the market with a lease of a few days over 59 years unexpired. Milo informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Spring we were approach by Mrs Morgan Bernard , who was assigned a lease of a newly refurbished apartment in Silverstone in January 2005. The question was if we could approximate the price could be for a 90 year lease extension. Similar homes in Silverstone with a long lease were worth £218,400. The average amount of ground rent was £60 collected every twelve months. The lease concluded in 2085. Considering the 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.
Dr Rachael Ali bought a basement apartment in Silverstone in April 2003. The question was if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Silverstone with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced annually. The lease finished on 15 July 2105. Considering the 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 plus professional charges.