When it comes to long leasehold property in Silsoe, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in Silsoe with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Silsoe with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Silsoe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her first floor apartment in Silsoe, Hannah started the lease extension process as the 80 year deadline was quickly nearing. The lease extension completed in September 2015. The landlord’s fees were restricted to about four hundred GBP.
Dr L Petit acquired a one bedroom flat in Silsoe in September 1997. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical premises in Silsoe with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 billed annually. The lease ended in 2080. Taking into account 54 years outstanding we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including fees.
Last Summer we were contacted by Mr and Mrs. L Nelson , who moved into a purpose-built flat in Silsoe in July 2006. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable premises in Silsoe with a long lease were worth £295,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish on 3 January 2100. Taking into account 74 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.