Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Millom. Inevitably, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Millom have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Millom lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Millom with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Chelsea Building Society||85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
Retaining our service will provide you better control over the value of your Millom leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her basement apartment in Millom, Lydia started the lease extension process as the 80 year threshold was quickly approaching. The legal work was finalised in April 2014. The freeholder’s charges were negotiated to slightly above 600 GBP.
Last year we were called by Dr T Hill , who bought a purpose-built apartment in Millom in November 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Millom with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 6 May 2071. Having 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of fees.
Last Spring we were phoned by Mr M Carter , who purchased a basement flat in Millom in April 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Millom with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 collected annually. The lease ended on 12 June 2082. Having 61 years unexpired we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.