On the balance of probabilities where you own a flat in Milnthorpe you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Milnthorpe can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Milnthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a high value apartment in Milnthorpe being marketed with a lease of a few days over 61 years left. Isaac informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last Spring we were approach by Mrs Holly González , who purchased a garden flat in Milnthorpe in April 2006. The question was if we could approximate the price would be for a ninety year lease extension. Comparable premises in Milnthorpe with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed on 15 September 2096. Taking into account 70 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
In 2014 we were called by Mr W Lefebvre who, having owned a garden flat in Milnthorpe in January 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative properties in Milnthorpe with 100 year plus lease were valued about £223,400. The average amount of ground rent was £60 invoiced yearly. The lease ran out on 7 November 2085. Given that there were 59 years outstanding we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of costs.