Main reasons to commence your Millom lease extension

Main reasons to commence your Millom lease extension today:

Increase your lease and increase your Millom property value

Millom leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Millom residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Millom you really ought to see if your lease has between seventy and ninety years left. There are good reasons why a Millom flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders will not issue a mortgage on a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Retaining our service gives you increased control over the value of your Millom leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Millom Lease Extension Case Summaries:

Chloe, Millom, Cumbria,

Subsequent to protracted correspondence with the freeholder of her leasehold apartment in Millom, Chloe initiated the lease extension process as the 80 year threshold was fast advancing. The legal work was finalised in January 2015. The landlord’s charges were negotiated to below 550 GBP.

Millom case:

Dr U Phillips was assigned a lease of a basement flat in Millom in August 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical residencies in Millom with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 collected per annum. The lease concluded in 2076. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of legals.

Millom case:

Last May we were approach by Dr J Allen , who took over the lease of a purpose-built apartment in Millom in April 1999. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable properties in Millom with an extended lease were valued about £208,200. The average ground rent payable was £65 billed monthly. The lease finished on 28 July 2087. Having 61 years as a residual term we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.