Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Millom. Clearly, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Millom have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before putting off your Millom lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Millom can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 procuring Millom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her leasehold flat in Millom, Mollie initiated the lease extension process as the 80 year mark was swiftly advancing. The legal work completed in April 2012. The freeholder’s costs were restricted to under six hundred pounds.
In 2009 we were approached by Mr and Mrs. M Girard who, having completed a basement flat in Millom in April 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Millom with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was on 3 March 2096. Considering the 70 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2013 we were e-mailed by Dr Rhiannon Nelson who, having acquired a newly refurbished flat in Millom in November 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Millom with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 collected monthly. The lease concluded on 7 February 2076. Having 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.