It’s a harsh certainty that a Millom residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Millom property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Millom will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Millom with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Yorkshire Building Society |
Lease extensions in Millom can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 in-depth market knowledge 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.
Last Winter Kai, came perilously close to the eighty-year mark with the lease on his purpose- built apartment in Millom. Having purchased his property two decades ago, the length of the lease was of little interest. by good luck, he became aware that he would soon be paying way over the odds for Extending the lease. Kai extended the lease at the eleventh hour last March. Kai and the landlord in the end agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the figure would have gone up by a minimum £850.
In 2009 we were contacted by Mr and Mrs. Y Girard who, having completed a garden flat in Millom in April 2008. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Millom with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2095. Having 69 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last month we were approach by Dr C Wright , who took over the lease of a first floor flat in Millom in August 2001. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar properties in Millom with an extended lease were valued around £290,000. The average amount of ground rent was £60 invoiced per annum. The lease came to a finish in 2106. Taking into account 80 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.