The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ilfracombe may extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Ilfracombe lease extension. Shelving that expense now simply increases the price you will eventually have to pay to extend the lease.
Leasehold residencies in Ilfracombe with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 better control over the value of your Ilfracombe leasehold, as your property will be more valuable and saleable in terms of lease length should you want 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.
Trailing protracted correspondence with the freeholder of her garden flat in Ilfracombe, Lucy commenced the lease extension process as the 80 year threshold was swiftly nearing. The legal work was finalised in February 2015. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were contacted by Mr and Mrs. N Lefèvre , who completed a one bedroom flat in Ilfracombe in July 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative residencies in Ilfracombe with an extended lease were in the region of £181,600. The average ground rent payable was £55 collected annually. The lease lapsed in 2076. Taking into account 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.
In 2012 we were called by Dr J Díaz who, having took over the lease of a purpose-built apartment in Ilfracombe in September 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable residencies in Ilfracombe with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2096. Having 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.