The market value of a leasehold property in Silsoe depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed well before the eighty year mark. Leasehold Reform legislation entitles Silsoe qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Silsoe leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas was the the leasehold proprietor of a high value apartment in Silsoe on the market with a lease of fraction over sixty years left. Lucas informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last August we were e-mailed by Mr and Mrs. G Wood , who acquired a garden apartment in Silsoe in November 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable residencies in Silsoe with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished on 25 November 2085. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.
In 2011 we were approached by Mr Arthur Roberts who, having owned a basement flat in Silsoe in June 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Silsoe with an extended lease were valued around £205,000. The average ground rent payable was £50 billed annually. The lease terminated on 4 March 2105. Considering the 79 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.