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. Legislation has been in place for sometime now which permits qualifying Milnthorpe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Milnthorpe you really ought to see if your lease has between 70 and 90 years remaining. There are good reasons why a Milnthorpe leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Milnthorpe valuers.
In the wake of 6 months of unsuccessful correspondence with the landlord of her basement apartment in Milnthorpe, Sian commenced the lease extension process as the 80 year mark was rapidly nearing. The transaction was concluded in November 2007. The freeholder’s costs were negotiated to about 700 pounds.
Last Spring we were approach by Dr T Leroy , who took over the lease of a ground floor apartment in Milnthorpe in March 1995. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar residencies in Milnthorpe with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish on 17 March 2106. Taking into account 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2010 we were called by Mr and Mrs. M Gray who, having was assigned a lease of a one bedroom apartment in Milnthorpe in September 2008. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Milnthorpe with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 collected yearly. The lease finished in 2095. Considering the 69 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.