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 your lease becomes more expensive. It is the case that most Silverton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Silverton you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Silverton leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Silverton with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 solicitors 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.
Ben was the the leasehold proprietor of a studio apartment in Silverton being marketed with a lease of fraction over 72 years unexpired. Ben informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord 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 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were called by Mr and Mrs. G Laurent , who acquired a studio apartment in Silverton in October 2006. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Silverton with a long lease were worth £235,600. The average amount of ground rent was £60 invoiced monthly. The lease expired on 8 August 2088. Having 62 years left we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
Dr Y André bought a newly refurbished apartment in Silverton in October 2011. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable premises in Silverton with an extended lease were worth £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed in 2077. Taking into account 51 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus costs.