The market value of Silvertown leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than 80 years
Leasehold residencies in Silvertown with in excess of 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors that we work with handle Silvertown 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 conveyancing solicitor we work with provide it.
Subsequent to lengthy discussions with the landlord of her ground floor apartment in Silvertown, Georgia started the lease extension process as the eighty year deadline was fast coming. The lease extension completed in October 2011. The landlord’s fees were restricted to a tad over 700 pounds.
Last Summer we were approach by Mr and Mrs. U Walker , who took over the lease of a basement flat in Silvertown in January 1998. The dilemma was if we could estimate the price would be for a 90 year lease extension. Identical premises in Silvertown with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed annually. The lease termination date was on 20 April 2080. Considering the 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.
An example of a Lease Extension decision for a Silvertown property 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 lease term was 69.77 years.