Main reasons to start your Millom lease extension

Top reasons for lease extension now:

A Millom lease depreciates with the years remaining on the lease.

With a long leasehold premises in Millom, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Millom with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.

Millom property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not loan monies with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved 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

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 lawyer we work with provide it.

Millom Lease Extension Example Cases:

Jake, Millom, Cumbria

During the course of the last few months Jake, came precariously near to the eighty-year mark with the lease on his one bedroom apartment in Millom. Having bought his home 19 years ago, the unexpired term was of little importance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Jake arranged for a lease extension just ahead of time last March. Jake and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,150.

Millom case:

In 2010 we were contacted by Mr and Mrs. A García who, having was assigned a lease of a first floor flat in Millom in August 1999. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Millom with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2103. Taking into account 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.

Millom case:

In 2011 we were approached by Dr W Thomas who, having purchased a newly refurbished flat in Millom in June 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Millom with an extended lease were worth £183,600. The average amount of ground rent was £65 invoiced quarterly. The lease ended on 5 May 2083. Given that there were 57 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.