The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Silvertown may extend the lease for an additional 90 years in accordance with statute. Do give careful consideration before delaying your Silvertown lease extension. Putting off that expense now simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold premises in Silvertown with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Ryan was the the leasehold proprietor of a 2 bedroom flat in Silvertown on the market with a lease of a little over 59 years outstanding. Ryan on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Christmas we were approach by Mr and Mrs. T Carter , who owned a one bedroom apartment in Silvertown in February 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Silvertown with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease concluded on 4 August 2079. Having 53 years remaining we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.
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 was in relation to 1 flat. The unexpired residue of the current lease was 69.77 years.