With a long leasehold property in Silverstone, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in Silverstone with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Silverstone with in excess of 100 years unexpired 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 upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Silverstone,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Silverstone valuers.
Half a year ago Alexander, came very near to the 80-year threshold with the lease on his one bedroom apartment in Silverstone. In buying his flat 19 years previously, the length of the lease was of minimal importance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Alexander extended the lease at the eleventh hour last March. Alexander and the landlord ultimately agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the amount would have escalated by at least £875.
Mr and Mrs. D Brown was assigned a lease of a basement apartment in Silverstone in January 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Silverstone with a long lease were worth £250,400. The average ground rent payable was £65 invoiced yearly. The lease finished on 18 November 2090. Taking into account 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.
Last Summer we were approach by Mrs Jordan Cox , who was assigned a lease of a ground floor apartment in Silverstone in July 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical premises in Silverstone with a long lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded on 24 March 2079. Taking into account 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.