Main reasons to commence your Millom lease extension

Why you should commence your Millom lease extension today:

Increase your lease and increase your Millom property value

Millom leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be due. Flat owners in Millom will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions may not lend with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Millom lease extension solicitors or enfranchisement solicitors

Lease extensions in Millom can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.

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 dealing with Millom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Millom Lease Extension Case Summaries:

Chelsea, Millom, Cumbria,

After lengthy discussions with the landlord of her garden apartment in Millom, Chelsea started the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work completed in September 2014. The freeholder’s charges were negotiated to under 500 pounds.

Millom case:

Last month we were approach by Dr U Harris , who was assigned a lease of a purpose-built apartment in Millom in February 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Millom with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired on 27 August 2080. Considering the 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus fees.

Millom case:

Mrs Amy Gray took over the lease of a first floor apartment in Millom in August 2004. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical homes in Millom with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 billed per annum. The lease end date was in 2091. Given that there were 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.