The market value of a leasehold property in Millom is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be addressed well before the 80 year cut off point. Leasehold Reform legislation enables Millom qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Millom,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Millom valuers.
In recent months Luca, started to get near to the 80-year mark with the lease on his two bedroom apartment in Millom. In buying his flat two decades ago, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Luca arranged for a lease extension at the eleventh hour last June. Luca and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £1,000.
Ms Paige Bonnet took over the lease of a purpose-built flat in Millom in August 2009. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative premises in Millom with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced annually. The lease expiry date was on 27 January 2088. Given that there were 62 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.
Mrs F López purchased a garden flat in Millom in March 1997. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Similar flats in Millom with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 15 April 2099. Given that there were 73 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.