Silsoe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Silsoe tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Silsoe you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Silsoe with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Silsoe can be a difficult process. We recommend you procure professional help 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 Silsoe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her two bedroom apartment in Silsoe, Jordan started the lease extension process as the eighty year threshold was fast nearing. The legal work completed in January 2012. The landlord’s fees were negotiated to a tad over 650 pounds.
Mr and Mrs. S Khan completed a first floor flat in Silsoe in March 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Silsoe with an extended lease were worth £250,400. The average amount of ground rent was £65 collected quarterly. The lease finished on 5 June 2089. Having 64 years outstanding we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Last month we were approach by Mrs E Mercier , who acquired a garden apartment in Silsoe in January 2009. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Identical flats in Silsoe with an extended lease were in the region of £189,000. The average amount of ground rent was £55 billed monthly. The lease expired on 27 August 2078. Considering the 53 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.