Silsoe leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Silsoe will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Silsoe,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Silsoe valuers.
During the course of the last few months Sam, started to get close to the 80-year threshold with the lease on his purpose- built flat in Silsoe. Having purchased his home two decades ago, the lease term was of minimal concern. As luck would have it, he realised he would soon be paying way over the odds for Extending the lease. Sam arranged for a lease extension at the eleventh hour last January. Sam and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had dropped below 80 years, the premium would have gone up by at least £875.
Ms Stephanie Girard purchased a garden flat in Silsoe in November 1996. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar homes in Silsoe with a long lease were worth £206,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired in 2081. Having 56 years unexpired we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.
Last month we were e-mailed by Mr and Mrs. E Evans , who acquired a one bedroom flat in Silsoe in October 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Silsoe with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected yearly. The lease end date was in 2101. Considering the 76 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.