Silverton leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Silverton will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax |
Irrespective of whether you are a tenant or a landlord in Silverton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Silverton valuers.
Caleb was the the leasehold proprietor of a conversion flat in Silverton being marketed with a lease of fraction over 72 years outstanding. Caleb informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend 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. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last month we were e-mailed by Mr and Mrs. R Cox , who acquired a garden flat in Silverton in October 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Silverton with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease elapsed on 5 September 2097. Considering the 71 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2011 we were called by Mr and Mrs. U Ricardo who, having bought a ground floor apartment in Silverton in March 2011. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Silverton with a long lease were in the region of £225,800. The average ground rent payable was £60 collected quarterly. The lease end date was on 19 February 2086. Taking into account 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus fees.