Ilfracombe leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Ilfracombe will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Ilfracombe with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Ilfracombe leasehold, as your property will be more valuable and marketable in relation to the 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.
Dexter was the the leasehold proprietor of a high value flat in Ilfracombe on the market with a lease of a few days over 72 years unexpired. Dexter on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last Christmas we were approach by Mr and Mrs. H Stewart , who owned a studio flat in Ilfracombe in November 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative premises in Ilfracombe with a long lease were in the region of £184,000. The average ground rent payable was £55 billed annually. The lease lapsed on 28 February 2079. Given that there were 53 years unexpired we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.
Last Summer we were approach by Dr E Bertrand , who purchased a first floor apartment in Ilfracombe in January 2005. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Ilfracombe with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced yearly. The lease came to a finish on 5 October 2099. Considering the 73 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.