Stop! Your Lease Extension in Millom Could Be FREE

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Many leaseholders in Millom are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Millom has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Millom lease extension

Main reasons to start your Millom lease extension today:

Increase your lease and increase your Millom property value

Millom residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

Millom property with a lease extension has roughly the same value as a freehold

Leasehold premises in Millom with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not issue a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Accord Mortgages 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.
Bank of Scotland Minimum 70 years from the date 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: 
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.
 


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.

Royal Bank of Scotland Mortgage term plus 30 years.
Yorkshire 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.

What makes us experts in Millom lease extensions?

The conveyancing solicitors that we work with handle 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.

Millom Lease Extension Case Summaries:

Nathaniel, Millom, Cumbria

Two years ago Nathaniel, came seriously close to the eighty-year mark with the lease on his basement flat in Millom. Having purchased his flat twenty years previously, the length of the lease was of little bearing. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Nathaniel arranged for a lease extension just in the nick of time last May. Nathaniel and the freeholder via the management company ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £1,075.

Millom case:

Mr and Mrs. K Mitchell purchased a one bedroom flat in Millom in October 2010. We are asked if we could estimate the price could be for a 90 year lease extension. Identical flats in Millom with an extended lease were worth £208,200. The average amount of ground rent was £65 collected quarterly. The lease finished in 2087. Given that there were 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.

Millom case:

Dr Charlotte Taylor was assigned a lease of a garden apartment in Millom in October 2008. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Similar residencies in Millom with a long lease were worth £260,000. The average ground rent payable was £50 invoiced quarterly. The lease expired on 11 August 2098. Given that there were 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.