For those whose Ilfracombe flat is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Ilfracombe with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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 conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Omar owned a studio apartment in Ilfracombe on the market with a lease of fraction over 72 years left. Omar informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were approached by Mrs Isabella Ali who, having completed a garden apartment in Ilfracombe in July 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable homes in Ilfracombe with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended in 2104. Having 79 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Dr K Gunderson acquired a studio apartment in Ilfracombe in April 1997. The question was if we could estimate the price could be to extend the lease by an additional years. Comparative properties in Ilfracombe with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 billed annually. The lease concluded in 2093. Taking into account 68 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.