The market value of Silverton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is below than 80 years
Leasehold properties in Silverton with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Silverton,the lease extension lawyers that we work with will always be prepared 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.
In 2014 George, came precariously close to the eighty-year threshold with the lease on his first floor apartment in Silverton. In buying his flat 19 years ago, the unexpired term was of minimal concern. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. George was able to extend his lease just under the wire in January. George and the freeholder via the managing agents eventually settled on a premium of £5,500 . If he not met the deadline, the sum would have increased by a minimum £1,125.
Last month we were phoned by Mr and Mrs. S Petit , who bought a purpose-built apartment in Silverton in June 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar properties in Silverton with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated in 2098. Having 73 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
In 2014 we were phoned by Dr F Smith who, having purchased a basement flat in Silverton in February 2003. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparable residencies in Silverton with a long lease were in the region of £235,600. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed on 23 September 2087. Having 62 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.