Silsoe leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Silsoe will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Nathaniel was the the leasehold owner of a studio flat in Silsoe on the market with a lease of a few days over 72 years remaining. Nathaniel informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. E Scott who, having owned a studio flat in Silsoe in January 2008. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative residencies in Silsoe with an extended lease were worth £174,200. The mid-range ground rent payable was £55 collected annually. The lease lapsed on 1 June 2077. Having 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Mr and Mrs. I Patel was assigned a lease of a studio flat in Silsoe in January 2008. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar residencies in Silsoe with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected yearly. The lease elapsed on 28 October 2097. Having 71 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.