Milnthorpe leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Milnthorpe will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Milnthorpe 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.
Two years ago Eliot, came critically close to the 80-year threshold with the lease on his two bedroom apartment in Milnthorpe. Having purchased his flat two decades ago, the length of the lease was of minimal concern. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Eliot arranged for a lease extension at the eleventh hour in August. Eliot and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,000.
Ms Gemma Simon took over the lease of a purpose-built apartment in Milnthorpe in February 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Milnthorpe with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 billed monthly. The lease elapsed in 2090. Given that there were 64 years remaining we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus fees.
Dr Jasper Moreau bought a purpose-built flat in Milnthorpe in April 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Milnthorpe with a long lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired in 2079. Given that there were 53 years outstanding we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.