Silverton leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Silverton will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Silverton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Lewis, started to get near to the eighty-year threshold with the lease on his garden flat in Silverton. Having bought his property twenty years ago, the lease term was of little bearing. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Lewis arranged for a lease extension at the eleventh hour last January. Lewis and the freeholder eventually settled on a premium of £5,000 . If the lease had slid to less than eighty years, the sum would have become more exhorbitant by at least £975.
Dr James Cox owned a studio flat in Silverton in September 1998. The question was if we could approximate the price could be to extend the lease by 90 years. Comparative premises in Silverton with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 6 June 2077. Taking into account 51 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Dr B Clark acquired a purpose-built flat in Silverton in July 2002. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative residencies in Silverton with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected annually. The lease expired in 2097. Taking into account 71 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.