Top reasons for Ilkley lease extension

Top reasons for lease extension now:

A Ilkley leasehold property depreciates with the years remaining on the lease.

The market value of Ilkley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years

An extended lease is almost the same value as a freehold

Leasehold residencies in Ilkley with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not loan monies on a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Ilkley lease extensions?

Using our service will provide you better control over the value of your Ilkley leasehold, as your property will be more valuable and saleable 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.

Ilkley Lease Extension Case Studies:

Finley, Ilkley, West Yorkshire,

Finley owned a studio apartment in Ilkley on the market with a lease of fraction over 61 years outstanding. Finley informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Finley to exercise his statutory right. Finley obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Ilkley case:

In 2009 we were called by Dr Leon González who, having purchased a ground floor flat in Ilkley in August 1999. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable residencies in Ilkley with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed in 2097. Given that there were 71 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.

Ilkley case:

In 2013 we were called by Mr and Mrs. M Murphy who, having bought a purpose-built apartment in Ilkley in April 1998. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Ilkley with a long lease were in the region of £254,200. The average amount of ground rent was £60 collected yearly. The lease came to a finish in 2077. Having 51 years outstanding we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including fees.