The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ilfracombe have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Ilfracombe lease extension. Putting off that expense today simply escalates the price you will ultimately have to pay to extend the lease.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased 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 conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her leasehold flat in Ilfracombe, Sian started the lease extension process as the 80 year mark was rapidly coming. The lease extension was concluded in November 2005. The landlord’s charges were restricted to less than 550 GBP.
In 2014 we were called by Mr and Mrs. T Clark who, having completed a one bedroom flat in Ilfracombe in February 2005. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable premises in Ilfracombe with a long lease were valued around £250,400. The average ground rent payable was £65 collected annually. The lease concluded in 2089. Considering the 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of professional charges.
Dr A King bought a purpose-built flat in Ilfracombe in August 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Ilfracombe with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 collected monthly. The lease expired in 2078. Having 53 years remaining we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.