Ilkley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Ilkley tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ilkley you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Ilkley with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Ilkley can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Ilkley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Jake, started to get close to the eighty-year mark with the lease on his basement flat in Ilkley. In buying his property two decades ago, the unexpired term was of little bearing. by good luck, he became aware that he would imminently be paying an escalated premium for Extending the lease. Jake was able to extend his lease just ahead of time last August. Jake and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had slid below eighty years, the premium would have increased by a minimum £925.
Mr Owen Sharif acquired a basement apartment in Ilkley in March 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Ilkley with an extended lease were in the region of £225,400. The average amount of ground rent was £45 billed per annum. The lease finished in 2090. Given that there were 64 years as a residual term we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of costs.
Mr and Mrs. U Anderson owned a purpose-built flat in Ilkley in March 2012. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Ilkley with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out in 2101. Taking into account 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.