The market value of a leasehold property in Silsoe is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised ahead of the 80 year cut off point. Statute entitles Silsoe qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| TSB | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Engaging our service gives you increased control over the value of your Silsoe leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a 2 bedroom flat in Silsoe being marketed with a lease of just over 59 years unexpired. Blake on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were approach by Mr and Mrs. R Díaz , who moved into a one bedroom apartment in Silsoe in August 1998. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar flats in Silsoe with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded in 2096. Considering the 70 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Last Spring we were contacted by Mr J Collins , who owned a garden apartment in Silsoe in May 2010. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Silsoe with a long lease were in the region of £223,400. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2085. Given that there were 59 years outstanding we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 plus fees.