Main reasons to commence your Ilfracombe lease extension

Main reasons to commence your Ilfracombe lease extension today:

A Ilfracombe lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Ilfracombe, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long 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 increases markedly especially when there are fewer than 80 years remaining. Anyone in Ilfracombe with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.

Ilfracombe property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lenders may not loan monies with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Ilfracombe?

Engaging our service will provide you increased control over the value of your Ilfracombe leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ilfracombe Lease Extension Case Summaries:

Lucy, Ilfracombe, Devon,

Following protracted discussions with the freeholder of her garden apartment in Ilfracombe, Lucy initiated the lease extension process as the eighty year threshold was swiftly approaching. The lease extension was finalised in March 2015. The landlord’s fees were kept to an absolute minimum.

Ilfracombe case:

In 2010 we were approached by Mr and Mrs. J Brooks who, having purchased a garden flat in Ilfracombe in March 2002. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Ilfracombe with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 collected yearly. The lease finished in 2090. Given that there were 64 years remaining we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus legals.

Ilfracombe case:

In 2012 we were approached by Mr and Mrs. B Mason who, having moved into a studio flat in Ilfracombe in April 1996. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in Ilfracombe with an extended lease were in the region of £184,000. The average ground rent payable was £55 invoiced monthly. The lease ended in 2079. Taking into account 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.