With a long leasehold premises in Ilfracombe, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years left. Anyone in Ilfracombe with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has less than eighty years remaining, under the current statute the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society |
The lawyers 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 conveyancer we work with provide it.
Milo owned a conversion flat in Ilfracombe being sold with a lease of a little over 61 years outstanding. Milo informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were approached by Mr and Mrs. J Cook who, having acquired a basement flat in Ilfracombe in November 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical properties in Ilfracombe with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended in 2105. Given that there were 79 years unexpired we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of professional charges.
In 2009 we were approached by Dr Sebastian Alexander who, having took over the lease of a recently refurbished flat in Ilfracombe in November 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Ilfracombe with a long lease were in the region of £270,000. The average ground rent payable was £65 billed every twelve months. The lease elapsed in 2094. Taking into account 68 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.