Silverton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Silverton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Silverton you really ought to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Silverton flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The lawyers that we work with undertake Silverton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jonathan was the the leasehold proprietor of a conversion flat in Silverton on the market with a lease of a few days over 59 years left. Jonathan on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last month we were phoned by Ms Millie Evans , who was assigned a lease of a ground floor apartment in Silverton in November 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable homes in Silverton with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected yearly. The lease ran out on 12 February 2100. Considering the 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last Summer we were phoned by Mr and Mrs. D Bonnet , who acquired a purpose-built apartment in Silverton in September 2009. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Silverton with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 billed per annum. The lease concluded on 19 November 2089. Having 63 years unexpired we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.