The market value of Silsoe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
Leasehold residencies in Silsoe with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The lawyers that we work with procure Silsoe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Christmas Ethan, came seriously near to the 80-year mark with the lease on his garden apartment in Silsoe. In buying his flat two decades ago, the lease term was of minimal interest. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Ethan arranged for a lease extension just in the nick of time in January. Ethan and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £875.
Mr and Mrs. N Lefèvre was assigned a lease of a studio flat in Silsoe in September 1995. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Silsoe with an extended lease were worth £285,000. The average amount of ground rent was £45 billed every twelve months. The lease elapsed on 9 November 2097. Considering the 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
Mr and Mrs. B Murphy purchased a studio apartment in Silsoe in September 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Silsoe with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 15 June 2086. Having 61 years remaining we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including expenses.