Silvertown leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Silvertown tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Silvertown you should see if your lease has between seventy and 90 years left. There are good reasons why a Silvertown leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Silvertown with in excess of 100 years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Silvertown,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Silvertown valuers.
Subsequent to unsuccessful correspondence with the landlord of her purpose-built flat in Silvertown, Molly initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction was finalised in May 2008. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. P Pérez who, having moved into a purpose-built apartment in Silvertown in June 2004. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative residencies in Silvertown with an extended lease were valued around £183,600. The mid-range ground rent payable was £65 billed monthly. The lease lapsed in 2083. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
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 affected 1 flat. The unexpired term was 69.77 years.