The market value of a leasehold property in Silvertown depends on how long the lease has left to run. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year mark. Current legislation entitles Silvertown qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Silvertown with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Silvertown,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Silvertown valuers.
In the wake of eight months of lengthy discussions with the freeholder of her one bedroom apartment in Silvertown, Alexandra commenced the lease extension process as the 80 year deadline was quickly advancing. The legal work was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were contacted by Ms B Cooper who, having was assigned a lease of a one bedroom flat in Silvertown in October 2008. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in Silvertown with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2088. Given that there were 62 years unexpired we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.
An example of a Lease Extension case for a Silvertown premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case related to 1 flat. The unexpired residue of the current lease was 69.77 years.