It’s an underpublicised certainty that a Milnthorpe residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Milnthorpe property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Milnthorpe will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Milnthorpe with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | 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 However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
Lease extensions in Milnthorpe can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Milnthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Owen, started to get near to the eighty-year threshold with the lease on his basement flat in Milnthorpe. Having bought his flat two decades ago, the length of the lease was of no concern. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Owen arranged for a lease extension at the eleventh hour in June. Owen and the landlord ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,150.
Last Winter we were phoned by Mr and Mrs. Y Harris , who completed a studio flat in Milnthorpe in May 1998. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Similar premises in Milnthorpe with a long lease were valued about £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 2 July 2091. Having 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus fees.
Mr and Mrs. L Evans bought a garden flat in Milnthorpe in August 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical homes in Milnthorpe with an extended lease were valued about £198,800. The average ground rent payable was £55 invoiced per annum. The lease terminated in 2080. Given that there were 55 years as a residual term we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.