It’s an underpublicised certainty that a Ilminster residential lease is a wasting 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 deflation being disguised by increases in the Ilminster property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Ilminster will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Ilminster with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Ilminster can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 procuring Ilminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli owned a conversion flat in Ilminster being marketed with a lease of a little over sixty years left. Eli informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli obtained expert advice and secured an acceptable deal informally and sell the flat.
Dr Eliot Wright owned a recently refurbished flat in Ilminster in March 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar premises in Ilminster with an extended lease were valued around £240,600. The mid-range ground rent payable was £60 billed quarterly. The lease finished on 28 February 2088. Having 62 years left we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
Last Winter we were contacted by Mrs Megan Ramírez , who purchased a one bedroom flat in Ilminster in June 2008. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative properties in Ilminster with a long lease were worth £174,200. The average ground rent payable was £55 collected annually. The lease came to a finish on 17 May 2077. Considering the 51 years left we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.