The market value of a leasehold property in Silverton depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year threshold. Current legislation entitles Silverton qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Silverton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Silverton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Silverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam owned a studio flat in Silverton being sold with a lease of a few days over sixty years outstanding. Sam on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. D Khan completed a one bedroom flat in Silverton in May 1999. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable premises in Silverton with 100 year plus lease were valued around £201,200. The average amount of ground rent was £55 collected annually. The lease terminated in 2082. Taking into account 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.
Last year we were contacted by Mr Jude Norbert , who bought a basement flat in Silverton in January 1996. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable residencies in Silverton with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 invoiced annually. The lease finished on 11 May 2102. Considering the 76 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.