With a residential leasehold property in Ilfracombe, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Ilfracombe with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
The conveyancing solicitors that we work with procure Ilfracombe 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 lawyer we work with provide it.
Off the back of lengthy correspondence with the landlord of her ground floor apartment in Ilfracombe, Danielle initiated the lease extension process as the 80 year mark was rapidly advancing. The legal work completed in July 2013. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. A Johnson owned a one bedroom apartment in Ilfracombe in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Ilfracombe with an extended lease were worth £240,600. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed in 2084. Having 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.
Last month we were phoned by Mr and Mrs. G García , who took over the lease of a studio apartment in Ilfracombe in February 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Ilfracombe with a long lease were valued around £174,200. The average amount of ground rent was £55 invoiced annually. The lease lapsed in 2073. Having 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.