There is no doubt about it a leasehold flat or house in Ilminster is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Ilminster will meet the qualifying criteria; however a conveyancer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Ilminster with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Royal Bank of Scotland | |
| Virgin |
The lawyers that we work with undertake Ilminster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Leon was the the leasehold proprietor of a 2 bedroom apartment in Ilminster being marketed with a lease of fraction over fifty eight years unexpired. Leon informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. D Davis who, having purchased a purpose-built flat in Ilminster in June 2011. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar residencies in Ilminster with a long lease were worth £267,600. The average ground rent payable was £65 billed yearly. The lease terminated on 20 January 2093. Given that there were 67 years outstanding we approximated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including expenses.
Last Summer we were e-mailed by Dr F David , who was assigned a lease of a one bedroom apartment in Ilminster in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Ilminster with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 collected yearly. The lease expired in 2082. Having 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.