The re-sale value of a leasehold property in Silvertown is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year threshold. Statute entitles Silvertown qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition 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 is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Silvertown can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Silvertown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jackson, came critically close to the eighty-year mark with the lease on his basement apartment in Silvertown. Having bought his property two decades ago, the length of the lease was of minimal concern. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Jackson was able to extend his lease just in the nick of time in June. Jackson and the landlord ultimately settled on the final figure of £6,000 . If he not met the deadline, the figure would have escalated by at least £975.
In 2010 we were called by Mr Leon Michel who, having acquired a first floor flat in Silvertown in February 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Silvertown with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2100. Having 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension case 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 affected 1 flat. The unexpired term was 69.77 years.