There is no doubt about it a leasehold flat or house in Silvertown is a wasting asset as a result of the diminishing lease term. Where the lease has, over 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Silvertown will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Silvertown with in excess of 100 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Silvertown 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 lawyer we work with provide it.
Following lengthy discussions with the freeholder of her garden apartment in Silvertown, Robyn initiated the lease extension process as the 80 year threshold was swiftly approaching. The lease extension was finalised in September 2008. The landlord’s charges were restricted to about 450 pounds.
Last Autumn we were phoned by Mr and Mrs. J Murphy , who moved into a basement flat in Silvertown in February 1997. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar premises in Silvertown with an extended lease were worth £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease end date was on 7 April 2100. Given that there were 75 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension case for a Silvertown residence 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 number of years remaining on the existing lease(s) was 69.77 years.