There is no doubt about it a leasehold property in Ilfracombe is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Ilfracombe will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Ilfracombe with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
The conveyancers 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.
Mason owned a studio flat in Ilfracombe being sold with a lease of just over 72 years outstanding. Mason on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Dr B Murphy took over the lease of a one bedroom flat in Ilfracombe in January 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Ilfracombe with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 collected yearly. The lease elapsed in 2086. Taking into account 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus costs.
In 2014 we were approached by Mr O David who, having was assigned a lease of a first floor flat in Ilfracombe in May 2001. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar flats in Ilfracombe with an extended lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease finished on 28 January 2075. Considering the 50 years remaining we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.