Milnthorpe leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Milnthorpe will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Milnthorpe with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Milnthorpe leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her garden flat in Milnthorpe, Lucy started the lease extension process just as her lease was nearing the critical eighty-year deadline. The lease extension completed in August 2013. The landlord’s costs were kept to an absolute minimum.
Last Winter we were contacted by Mr Y Reed , who purchased a purpose-built flat in Milnthorpe in June 2003. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative homes in Milnthorpe with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2098. Given that there were 74 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Last Summer we were e-mailed by Dr V David , who completed a ground floor apartment in Milnthorpe in February 2005. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar residencies in Milnthorpe with an extended lease were valued around £243,000. The average ground rent payable was £65 billed quarterly. The lease end date was in 2087. Taking into account 63 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including legals.