Chances are that where you own a flat in Silverton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Silverton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Silverton valuers.
Dexter was the the leasehold proprietor of a studio apartment in Silverton being marketed with a lease of a little over 61 years remaining. Dexter on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2009 we were approached by Ms C Morgan who, having moved into a first floor flat in Silverton in August 2003. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical flats in Silverton with a long lease were worth £225,800. The mid-range amount of ground rent was £60 billed monthly. The lease ended in 2085. Taking into account 60 years left we calculated the compensation to the landlord for the lease extension to be between £25,700 and £29,600 exclusive of costs.
Last September we were e-mailed by Mr and Mrs. J Vincent , who took over the lease of a first floor apartment in Silverton in September 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Silverton with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced yearly. The lease expired on 15 October 2105. Taking into account 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.