Millom leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Millom will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Millom with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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.
Jason owned a studio apartment in Millom being marketed with a lease of a little over 72 years remaining. Jason on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr S Lewis was assigned a lease of a garden apartment in Millom in July 2012. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Millom with a long lease were in the region of £191,000. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 12 March 2084. Considering the 58 years remaining we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including professional charges.
Mr and Mrs. H Pérez completed a ground floor flat in Millom in August 2009. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable residencies in Millom with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 19 March 2095. Considering the 69 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.