Ilfracombe Lease Extension - Free Consultation

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Main reasons to start your Ilfracombe lease extension


Why you should start your Ilfracombe lease extension today:

Increase your lease and increase your Ilfracombe property value

Ilfracombe 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. It is the case that most Ilfracombe tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ilfracombe you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not loan monies with a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term slips beneath a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Ilfracombe property.

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 should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
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.
National Westminster Bank Mortgage term plus 30 years.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Ilfracombe lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Ilfracombe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ilfracombe valuers.

Ilfracombe Lease Extension Example Cases:

Theo, Ilfracombe, Devon,

Theo owned a conversion apartment in Ilfracombe on the market with a lease of a little over sixty years unexpired. Theo on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Ilfracombe case:

In 2010 we were e-mailed by Mr P Pérez who, having was assigned a lease of a one bedroom apartment in Ilfracombe in September 2009. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Ilfracombe with an extended lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2099. Considering the 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.

Ilfracombe case:

In 2012 we were phoned by Mr A Anderson who, having took over the lease of a studio apartment in Ilfracombe in February 2006. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparative properties in Ilfracombe with a long lease were worth £250,400. The mid-range ground rent payable was £65 billed monthly. The lease expired in 2088. Taking into account 64 years remaining we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of legals.