Millwall leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be payable. Flat owners in Millwall will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Millwall 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 conveyancing solicitor we work with provide it.
Liam owned a studio apartment in Millwall on the market with a lease of a little over sixty years left. Liam informally contacted his freeholder being a well known local-based freehold company for a lease extension. 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 doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were called by Mr R Girard , who was assigned a lease of a studio flat in Millwall in November 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Millwall with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2101. Taking into account 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
An example of a Freehold Enfranchisement case for a Millwall residence is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The unexpired lease term was 101.61 years.