Silvertown leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Flat owners in Silvertown will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Silvertown with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Silvertown leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her purpose-built apartment in Silvertown, Alisha started the lease extension process as the 80 year deadline was fast approaching. The legal work completed in January 2008. The landlord’s charges were kept to an absolute minimum.
Last month we were approach by Mrs Lily Morel , who bought a purpose-built flat in Silvertown in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Silvertown with a long lease were valued about £203,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 20 September 2087. Taking into account 61 years unexpired we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.
An example of a Lease Extension decision for a Silvertown flat 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 affected 1 flat. The number of years remaining on the existing lease(s) was 69.77 years.