Ilfracombe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly 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. If you are a leasehold owner in Ilfracombe you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Ilfracombe with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Ilfracombe,the lease extension lawyers 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 2014 Owen, came seriously close to the eighty-year mark with the lease on his leasehold apartment in Ilfracombe. Having bought his home two decades ago, the lease term was of no bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Owen extended the lease just under the wire last June. Owen and the landlord eventually agreed on the final figure of £6,000 . If the lease had dipped lower than 80 years, the amount would have increased by a minimum £1,100.
In 2012 we were contacted by Ms Samantha Green who, having owned a ground floor apartment in Ilfracombe in March 2001. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative residencies in Ilfracombe with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 15 March 2098. Taking into account 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
In 2013 we were called by Mrs R Turner who, having purchased a purpose-built flat in Ilfracombe in May 2007. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical premises in Ilfracombe with a long lease were worth £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish in 2087. Having 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus costs.