When it comes to residential leasehold property in Ilkeston, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Ilkeston with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has fewer than 80 years outstanding, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Ilkeston with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Ilkeston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ryan owned a high value apartment in Ilkeston on the market with a lease of just over sixty years outstanding. Ryan informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were e-mailed by Mr and Mrs. V Ali who, having bought a ground floor flat in Ilkeston in September 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Ilkeston with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 billed monthly. The lease elapsed on 8 August 2097. Given that there were 71 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
In 2013 we were phoned by Mr Sam Mitchell who, having owned a garden apartment in Ilkeston in August 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative homes in Ilkeston with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2086. Considering the 60 years unexpired we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus costs.