Chances are that if you own a flat in Silverton you actually own a long leasehold interest over your property
Leasehold residencies in Silverton with more than 100 years left on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Silverton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dexter was the the leasehold proprietor of a conversion flat in Silverton on the market with a lease of a little over 61 years remaining. Dexter on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were phoned by Mr E Torres who, having owned a one bedroom flat in Silverton in June 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Silverton with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was on 1 February 2091. Considering the 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2009 we were phoned by Mr Alfie Ward who, having bought a purpose-built apartment in Silverton in July 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Silverton with an extended lease were worth £213,600. The average amount of ground rent was £60 invoiced monthly. The lease ended on 4 April 2080. Taking into account 57 years unexpired we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.