The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Silsoe can extend the lease for an additional 90 years in accordance with legislation. Do think carefully before delaying your Silsoe lease extension. Postponing the costs now simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Silsoe with over one hundred years unexpired on the lease are often regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Silsoe can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
James was the the leasehold owner of a high value flat in Silsoe being sold with a lease of a little over 59 years left. James on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were James to exercise his statutory right. James procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr D Brown took over the lease of a basement flat in Silsoe in September 1998. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar flats in Silsoe with an extended lease were in the region of £260,200. The average ground rent payable was £65 collected yearly. The lease elapsed on 28 October 2091. Having 66 years left we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including expenses.
Last Spring we were approach by Dr Lucas Khan , who bought a one bedroom apartment in Silsoe in September 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Silsoe with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed in 2080. Considering the 55 years left we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.