The market value of a leasehold property in Ilkeston is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised prior to the eighty year threshold. Statute entitles Ilkeston qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Ilkeston with over 100 years remaining 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ilkeston can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring Ilkeston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Eli, came seriously close to the 80-year threshold with the lease on his purpose- built apartment in Ilkeston. In buying his property twenty years ago, the length of the lease was of minimal relevance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Eli was able to extend his lease at the eleventh hour in September. Eli and the landlord subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have increased by a minimum £850.
Last Autumn we were called by Mr and Mrs. U Patel , who bought a garden flat in Ilkeston in May 1999. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Ilkeston with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired in 2093. Considering the 67 years outstanding we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
In 2009 we were contacted by Dr N Gray who, having took over the lease of a studio flat in Ilkeston in June 2005. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Similar premises in Ilkeston with a long lease were worth £206,200. The average amount of ground rent was £55 collected monthly. The lease ran out on 21 August 2082. Taking into account 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.