The nearer a residential lease in Milnthorpe nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Milnthorpe will qualify for this right; that being said a lawyer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The conveyancers that we work with undertake Milnthorpe 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 conveyancer we work with provide it.
Caleb was the the leasehold proprietor of a high value flat in Milnthorpe on the market with a lease of just over fifty eight years remaining. Caleb informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Spring we were called by Dr T Lewis , who was assigned a lease of a studio apartment in Milnthorpe in July 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Similar premises in Milnthorpe with a long lease were valued about £171,800. The mid-range ground rent payable was £55 billed per annum. The lease lapsed in 2075. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including fees.
Last year we were contacted by Mr and Mrs. L Hall , who moved into a basement flat in Milnthorpe in November 2012. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Milnthorpe with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2095. Taking into account 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.