Unfortunately that a Millom residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Millom property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Millom will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Millom 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Millom,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Millom valuers.
Sam was the the leasehold proprietor of a studio flat in Millom being sold with a lease of just over 61 years outstanding. Sam on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Summer we were called by Mr and Mrs. S Brooks , who moved into a first floor flat in Millom in September 1998. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Millom with an extended lease were worth £227,800. The mid-range ground rent payable was £45 collected monthly. The lease termination date was on 26 March 2091. Given that there were 65 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
Mrs M Rogers bought a basement flat in Millom in June 1996. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative premises in Millom with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 invoiced yearly. The lease ended on 14 September 2102. Taking into account 76 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.