The market value of a leasehold property in Silverton is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised well before the eighty year cut off point. Leasehold Reform legislation enables Silverton qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Silverton can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 a wealth of experience procuring Silverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Sebastian, started to get near to the 80-year threshold with the lease on his basement apartment in Silverton. In buying his flat 18 years ago, the length of the lease was of no importance. by good luck, he noticed he needed to take action soon on a lease extension. Sebastian was able to extend his lease just under the wire in August. Sebastian and the landlord in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £925.
In 2012 we were phoned by Mr and Mrs. G Roberts who, having purchased a basement apartment in Silverton in September 2008. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Silverton with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2093. Having 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.
Dr P Parker owned a one bedroom flat in Silverton in October 2005. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparative residencies in Silverton with an extended lease were worth £201,200. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2082. Having 56 years remaining we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.