Millom leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Millom tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Millom you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Millom leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Millom lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of eight months of unsuccessful discussions with the landlord of her leasehold flat in Millom, Ellen commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The lease extension was finalised in September 2013. The freeholder’s fees were negotiated to slightly above four hundred GBP.
Dr Lauren Smith took over the lease of a newly refurbished apartment in Millom in October 2003. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparative homes in Millom with a long lease were valued about £290,000. The average amount of ground rent was £60 invoiced quarterly. The lease expired in 2105. Having 80 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
Mr K Baker purchased a one bedroom flat in Millom in October 1995. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Millom with a long lease were in the region of £200,800. The average ground rent payable was £65 billed monthly. The lease finished on 1 January 2085. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus costs.