As the the remaining lease term of a Millom domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Millom will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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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.
Last Summer Noah, came perilously near to the eighty-year mark with the lease on his garden apartment in Millom. Having bought his property 19 years previously, the lease term was of little relevance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Noah extended the lease just in the nick of time last April. Noah and the landlord ultimately agreed on a premium of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £925.
Last Winter we were contacted by Dr Ashleigh Kelly , who purchased a basement flat in Millom in November 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Millom with a long lease were in the region of £264,000. The average amount of ground rent was £60 invoiced per annum. The lease expiry date was in 2079. Given that there were 53 years left we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus legals.
In 2009 we were e-mailed by Mr and Mrs. A Campbell who, having was assigned a lease of a garden flat in Millom in October 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Millom with an extended lease were valued around £225,400. The average ground rent payable was £45 invoiced quarterly. The lease ended in 2090. Considering the 64 years unexpired we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including legals.