Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Millwall. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Millwall have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due consideration before delaying your Millwall lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Millwall with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Millwall,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Millwall valuers.
After unsuccessful negotiations with the landlord of her basement apartment in Millwall, Bethan commenced the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in August 2012. The landlord’s costs were restricted to under 700 pounds.
In 2012 we were contacted by Dr C Bernard who, having moved into a one bedroom flat in Millwall in September 2005. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable homes in Millwall with an extended lease were valued around £275,000. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2092. Taking into account 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Millwall property is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case was in relation to 3 flats. The unexpired lease term was 101.61 years.