With a long leasehold property in Ilfracombe, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Ilfracombe with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When the lease term has less than 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Ilfracombe can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Ilfracombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel was the the leasehold proprietor of a studio flat in Ilfracombe being sold with a lease of fraction over fifty eight years unexpired. Daniel on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. 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 £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert advice and secured an acceptable resolution informally and sell the flat.
Last Christmas we were contacted by Dr L Richardson , who took over the lease of a purpose-built apartment in Ilfracombe in June 1999. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Similar premises in Ilfracombe with a long lease were worth £300,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated in 2100. Taking into account 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Dr H White purchased a basement flat in Ilfracombe in April 2009. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Ilfracombe with a long lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease expiry date was in 2089. Considering the 64 years unexpired we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of fees.