The re-sale value of a leasehold property in Silverton is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year threshold. Statute entitles Silverton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Silverton with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Silverton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 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.
Jacob owned a 2 bedroom apartment in Silverton on the market with a lease of fraction over fifty eight years unexpired. Jacob informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Jacob to exercise his statutory right. Jacob procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last March we were called by Mr C González , who acquired a basement apartment in Silverton in August 2003. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Silverton with a long lease were in the region of £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease end date was on 3 November 2101. Taking into account 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2010 we were called by Mrs C Wilson who, having was assigned a lease of a newly refurbished apartment in Silverton in June 2002. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable properties in Silverton with a long lease were valued around £252,800. The mid-range ground rent payable was £65 invoiced yearly. The lease ended in 2090. Considering the 65 years remaining we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including costs.