Ilfracombe leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Ilfracombe will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Ilfracombe with over 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Retaining our service will provide you better 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.
Trailing unsuccessful correspondence with the freeholder of her purpose-built flat in Ilfracombe, Stephanie initiated the lease extension process as the 80 year threshold was rapidly approaching. The transaction completed in October 2005. The landlord’s costs were restricted to about 700 pounds.
Last July we were contacted by Mr and Mrs. H Moore , who owned a studio flat in Ilfracombe in August 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Ilfracombe with a long lease were worth £189,000. The average amount of ground rent was £55 billed quarterly. The lease elapsed on 1 August 2078. Having 53 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Last Spring we were e-mailed by Mr and Mrs. O Rivera , who owned a newly refurbished apartment in Ilfracombe in November 2008. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical premises in Ilfracombe with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected annually. The lease expired on 23 November 2098. Given that there were 73 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.