Milnthorpe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Milnthorpe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Milnthorpe you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Milnthorpe with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Milnthorpe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Milnthorpe valuers.
Off the back of protracted correspondence with the freeholder of her leasehold apartment in Milnthorpe, Aimee commenced the lease extension process as the eighty year deadline was quickly coming. The legal work was concluded in January 2005. The landlord’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. M David who, having acquired a first floor flat in Milnthorpe in October 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Milnthorpe with a long lease were valued around £257,800. The average ground rent payable was £65 invoiced monthly. The lease termination date was in 2091. Taking into account 65 years remaining we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of legals.
Dr L Nelson purchased a recently refurbished apartment in Milnthorpe in July 2011. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical residencies in Milnthorpe with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease came to a finish in 2080. Having 54 years left we calculated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of expenses.