The re-sale value of a leasehold property in Silsoe is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed ahead of the eighty year threshold. Statute entitles Silsoe qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| 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 landlord in Silsoe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Silsoe valuers.
Trailing unsuccessful negotiations with the freeholder of her studio flat in Silsoe, Shannon started the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in February 2013. The landlord’s charges were negotiated to under 650 pounds.
Last Winter we were e-mailed by Mr and Mrs. D Smith , who moved into a first floor flat in Silsoe in March 2005. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Silsoe with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expiry date was in 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
Mr L Green purchased a newly refurbished flat in Silsoe in November 2003. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable flats in Silsoe with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was in 2084. Taking into account 58 years left we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.