It’s an underpublicised truth that a Ilkeston residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Ilkeston property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Ilkeston will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Ilkeston with in excess of one hundred years left 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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Ilkeston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ilkeston valuers.
After protracted correspondence with the landlord of her leasehold apartment in Ilkeston, Yasmin commenced the lease extension process as the eighty year threshold was fast coming. The lease extension was concluded in September 2008. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. N Taylor moved into a recently refurbished flat in Ilkeston in April 2006. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative flats in Ilkeston with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 collected annually. The lease ran out on 14 January 2087. Having 61 years unexpired we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of costs.
In 2013 we were approached by Mr and Mrs. U Scott who, having completed a one bedroom flat in Ilkeston in September 2005. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Ilkeston with an extended lease were worth £166,800. The mid-range amount of ground rent was £50 collected quarterly. The lease ended on 11 September 2076. Taking into account 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.