Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Ilkley. Clearly, the period of lease left reduces over time. This is often ignored and only becomes a problem when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Ilkley have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful attention before putting off your Ilkley lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold residencies in Ilkley with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Ilkley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ilkley valuers.
Tyler owned a conversion apartment in Ilkley being marketed with a lease of a little over sixty years remaining. Tyler informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. W Jones , who moved into a basement apartment in Ilkley in October 1999. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Similar premises in Ilkley with an extended lease were worth £261,600. The average ground rent payable was £60 invoiced annually. The lease elapsed on 22 August 2078. Given that there were 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of costs.
In 2011 we were contacted by Mr and Mrs. K Green who, having bought a ground floor apartment in Ilkley in June 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Ilkley with an extended lease were worth £218,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 18 January 2089. Taking into account 63 years unexpired we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.