With a domestic leasehold premises in Silvertown, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Silvertown with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the relevant Act the landlord can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Silvertown with over one hundred years unexpired on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Silvertown,the lease extension experts 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 Silvertown valuers.
Last year Evan, came very near to the 80-year threshold with the lease on his leasehold apartment in Silvertown. Having purchased his property two decades ago, the length of the lease was of minimal bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Evan was able to extend his lease just ahead of time in April. Evan and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had slid lower than eighty years, the figure would have increased by a minimum £1,125.
In 2009 we were called by Mrs K Gunderson who, having was assigned a lease of a garden apartment in Silvertown in January 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Silvertown with an extended lease were worth £245,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed in 2093. Having 68 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
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 unexpired term was 69.77 years.