When it comes to long leasehold property in Silverton, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Residents in Silverton with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Silverton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 procure professional help from a conveyancer and valuer 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 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.
Dexter was the the leasehold owner of a 2 bedroom apartment in Silverton being sold with a lease of fraction over fifty eight years unexpired. Dexter on an informal basis contacted his landlord 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 subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last year we were e-mailed by Mr and Mrs. R Miller , who moved into a purpose-built flat in Silverton in October 2010. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative residencies in Silverton with a long lease were worth £206,200. The average ground rent payable was £60 invoiced yearly. The lease came to a finish on 21 February 2080. Considering the 56 years as a residual term we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
In 2014 we were phoned by Mr David García who, having purchased a basement apartment in Silverton in April 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Silverton with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed on 3 February 2100. Considering the 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.