When it comes to long leasehold premises in Milnthorpe, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years left. Anyone in Milnthorpe with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has fewer than 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Milnthorpe with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Milnthorpe can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 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.
Freddie owned a 2 bedroom apartment in Milnthorpe being sold with a lease of fraction over 59 years remaining. Freddie on an informal basis contacted his landlord a well known London-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 £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Dr I Khan acquired a ground floor apartment in Milnthorpe in June 2007. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Milnthorpe with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 collected annually. The lease ran out in 2098. Considering the 72 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
Ms Molly Martinez completed a basement apartment in Milnthorpe in August 1997. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable properties in Milnthorpe with an extended lease were in the region of £233,200. The average ground rent payable was £60 billed annually. The lease finished on 4 June 2087. Having 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.