Main reasons to start your Silvertown lease extension

Main reasons to start your Silvertown lease extension today:

Increase your lease and increase your Silvertown property value

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. The majority of owners of residential leasehold property in Silvertown enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Silvertown you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Silvertown property with a lease extension is almost the same value as a freehold

Leasehold properties in Silvertown with in excess of 100 years unexpired 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may decide not to finance a property with a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Silvertown lease extensions?

Retaining our service will provide you increased control over the value of your Silvertown leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Silvertown Lease Extension Example Cases:

Liam, Silvertown, London,

Liam was the the leasehold proprietor of a studio flat in Silvertown on the market with a lease of fraction over fifty eight years remaining. Liam informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.

Silvertown case:

In 2013 we were called by Ms O Murphy who, having was assigned a lease of a first floor apartment in Silvertown in March 2010. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable flats in Silvertown with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished in 2096. Considering the 70 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.