The market value of Silverton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Retaining our service will provide you increased control over the value of your Silverton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Reuben, came critically close to the 80-year threshold with the lease on his basement apartment in Silverton. In buying his home 19 years ago, the lease term was of little concern. Luckily, he recognised he needed to take action soon on Extending the lease. Reuben was able to extend his lease just under the wire last August. Reuben and the freeholder eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £875.
Last Summer we were e-mailed by Mr and Mrs. I Ward , who owned a one bedroom apartment in Silverton in July 2010. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical residencies in Silverton with 100 year plus lease were in the region of £166,800. The average ground rent payable was £50 collected annually. The lease concluded in 2076. Taking into account 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.
In 2011 we were called by Mr and Mrs. G Peterson who, having purchased a ground floor flat in Silverton in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Silverton with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease end date was in 2096. Having 70 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.