Unfortunately that a Millom residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Millom property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Millom will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Millom with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Millom valuers.
Subsequent to unsuccessful discussions with the landlord of her first floor apartment in Millom, Katie started the lease extension process just as the lease was nearing the critical eighty-year mark. The legal work completed in June 2007. The landlord’s fees were negotiated to less than six hundred GBP.
Dr T Rose completed a basement apartment in Millom in September 1995. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative premises in Millom with an extended lease were in the region of £218,000. The average ground rent payable was £45 billed annually. The lease lapsed in 2089. Considering the 63 years left we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.
In 2011 we were phoned by Mr and Mrs. E Nelson who, having purchased a studio flat in Millom in June 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Millom with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed on 27 February 2100. Given that there were 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.