When it comes to long leasehold property in Silverton, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years remaining. Anyone in Silverton with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Silverton with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Silverton,the lease extension lawyers 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 Silverton valuers.
Off the back of protracted discussions with the freeholder of her two bedroom flat in Silverton, Stephanie commenced the lease extension process as the 80 year deadline was fast nearing. The legal work was finalised in October 2011. The freeholder’s fees were negotiated to approximately 550 GBP.
Ms Sarah Lambert took over the lease of a ground floor flat in Silverton in April 2002. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Silverton with 100 year plus lease were valued around £252,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2090. Having 65 years remaining we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Mr A Clark took over the lease of a studio flat in Silverton in May 2010. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Silverton with an extended lease were worth £191,400. The average ground rent payable was £55 collected monthly. The lease elapsed in 2079. Having 54 years remaining we calculated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.