There is no doubt about it a leasehold flat or house in Ilfracombe is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Ilfracombe will qualify for this right; however a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Ilfracombe with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Ilfracombe leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Freddie, came perilously near to the eighty-year mark with the lease on his ground floor apartment in Ilfracombe. Having purchased his flat two decades ago, the lease term was of no relevance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Freddie was able to extend his lease just under the wire last March. Freddie and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had fallen below 80 years, the sum would have increased by at least £1,050.
In 2010 we were approached by Mr Rory Richardson who, having was assigned a lease of a garden apartment in Ilfracombe in January 1997. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Similar premises in Ilfracombe with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 collected annually. The lease elapsed in 2084. Given that there were 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including costs.
In 2013 we were phoned by Ms Lauren Flores who, having took over the lease of a one bedroom apartment in Ilfracombe in June 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative homes in Ilfracombe with a long lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease termination date was on 10 April 2104. Considering the 79 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.