The only way is down when it comes to Ilfracombe lease terms. Ilfracombe properties that have a remaining term less than than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will go up.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ilfracombe can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Thomas owned a 2 bedroom flat in Ilfracombe on the market with a lease of just over 72 years remaining. Thomas on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were called by Mr Kai Ricardo who, having moved into a recently refurbished apartment in Ilfracombe in March 1995. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Similar flats in Ilfracombe with an extended lease were valued about £200,000. The average ground rent payable was £50 collected yearly. The lease ran out on 22 June 2103. Taking into account 77 years unexpired we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Mr A Ward completed a newly refurbished flat in Ilfracombe in October 2004. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar flats in Ilfracombe with an extended lease were in the region of £265,200. The mid-range ground rent payable was £65 billed annually. The lease expiry date was in 2092. Taking into account 66 years left we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including professional charges.