Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Silvertown. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Silvertown have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give due deliberation before delaying your Silvertown lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Silvertown with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
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. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Silvertown can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 Silvertown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the landlord of her studio apartment in Silvertown, Maisie started the lease extension process as the eighty year mark was fast approaching. The transaction completed in March 2013. The landlord’s costs were kept to an absolute minimum.
Last March we were phoned by Mr F Lefèvre , who was assigned a lease of a garden apartment in Silvertown in September 2008. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Silvertown with a long lease were valued around £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 21 March 2095. Considering the 70 years unexpired we approximated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Silvertown property is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired term was 69.77 years.