Silsoe residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Silsoe can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
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 procuring Silsoe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her first floor apartment in Silsoe, Katie started the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was finalised in April 2012. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were contacted by Ms O Roux who, having completed a studio flat in Silsoe in April 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable flats in Silsoe with a long lease were worth £171,800. The mid-range amount of ground rent was £55 collected annually. The lease concluded in 2076. Taking into account 50 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.
Mr Ibrahim Ali owned a first floor flat in Silsoe in September 2001. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Silsoe with an extended lease were in the region of £280,000. The average ground rent payable was £45 billed yearly. The lease termination date was in 2096. Considering the 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.