With a residential leasehold premises in Ilfracombe, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Ilfracombe with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Ilfracombe with in excess of 100 years unexpired 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers 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.
Last October Sebastian, started to get near to the 80-year threshold with the lease on his basement apartment in Ilfracombe. In buying his flat 19 years ago, the lease term was of little concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. Sebastian was able to extend his lease just in the nick of time last June. Sebastian and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If the lease had slipped lower than 80 years, the sum would have gone up by a minimum £875.
Dr V Roux owned a first floor apartment in Ilfracombe in June 1996. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical residencies in Ilfracombe with an extended lease were in the region of £230,800. The mid-range ground rent payable was £60 billed per annum. The lease finished on 5 November 2085. Having 60 years outstanding we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 not including costs.
Mr and Mrs. M Khan took over the lease of a purpose-built apartment in Ilfracombe in July 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Ilfracombe with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed annually. The lease termination date was on 22 June 2105. Considering the 80 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.