Silverton leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher premium will be due. Flat owners in Silverton will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Silverton with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Silverton can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Ethan was the the leasehold owner of a studio flat in Silverton on the market with a lease of fraction over fifty eight years left. Ethan informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2011 we were phoned by Ms Poppy Vincent who, having bought a ground floor apartment in Silverton in July 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Silverton with a long lease were in the region of £200,000. The average ground rent payable was £50 billed quarterly. The lease terminated on 16 February 2104. Considering the 78 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last October we were called by Dr S Rodríguez , who acquired a purpose-built flat in Silverton in May 1997. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical premises in Silverton with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed per annum. The lease expired on 9 June 2093. Having 67 years outstanding we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.