There is no doubt about it a leasehold property in Silverton is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Silverton will qualify for this right; however a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Silverton,the lease extension solicitors that we work with will always be willing 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.
Connor was the the leasehold owner of a conversion flat in Silverton being marketed with a lease of just over 61 years remaining. Connor informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Autumn we were contacted by Mrs Kayleigh Turner , who took over the lease of a studio flat in Silverton in November 2005. The question was if we could estimate the price could be for a 90 year lease extension. Identical properties in Silverton with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2088. Considering the 67 years left we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus legals.
In 2009 we were phoned by Mr George Moore who, having owned a purpose-built flat in Silverton in April 2000. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical homes in Silverton with a long lease were in the region of £206,200. The average ground rent payable was £60 billed every twelve months. The lease finished on 7 March 2077. Considering the 56 years remaining we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.