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 your lease becomes more expensive. The majority of owners of residential leasehold property in Ilfracombe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ilfracombe you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Ilfracombe flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold properties in Ilfracombe with over 100 years remaining 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Ilfracombe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ilfracombe valuers.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her one bedroom flat in Ilfracombe, Kirsty started the lease extension process as the eighty year mark was fast nearing. The legal work was concluded in July 2008. The landlord’s charges were restricted to below 450 pounds.
Last month we were contacted by Dr Ali Green , who was assigned a lease of a studio flat in Ilfracombe in June 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Ilfracombe with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2100. Considering the 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2011 we were e-mailed by Mr and Mrs. D Richardson who, having moved into a ground floor flat in Ilfracombe in August 2006. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Ilfracombe with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed in 2089. Taking into account 68 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.