Silverton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Silverton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Silverton you really ought to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Silverton leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Silverton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Silverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a high value apartment in Silverton being marketed with a lease of fraction over 61 years unexpired. Freddie informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Mr and Mrs. C King purchased a studio apartment in Silverton in November 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in Silverton with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected per annum. The lease ran out on 4 November 2096. Having 70 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. T Howard owned a purpose-built apartment in Silverton in January 2004. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Similar homes in Silverton with a long lease were worth £218,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired in 2085. Having 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.