Silverton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Silverton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Silverton you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Silverton leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Engaging our service gives you better control over the value of your Silverton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Toby, started to get near to the 80-year threshold with the lease on his studio apartment in Silverton. In buying his flat two decades ago, the lease term was of minimal concern. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Toby extended the lease just ahead of time last June. Toby and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If the lease had dropped to less than 80 years, the price would have escalated by a minimum £1,050.
Mr and Mrs. N Lefebvre was assigned a lease of a purpose-built flat in Silverton in April 1996. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical flats in Silverton with 100 year plus lease were valued around £216,000. The average amount of ground rent was £60 billed every twelve months. The lease expiry date was in 2084. Given that there were 58 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.
In 2012 we were phoned by Mr and Mrs. L Rodríguez who, having bought a ground floor flat in Silverton in April 2006. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Silverton with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 collected annually. The lease terminated on 27 October 2104. Having 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.