Milnthorpe leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, 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 start incurring an additional element called marriage value. Leasehold owners in Milnthorpe will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Milnthorpe with more than one hundred years remaining on the lease are often 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 freehold unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Milnthorpe leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Kai, came critically near to the eighty-year threshold with the lease on his ground floor flat in Milnthorpe. In buying his home two decades ago, the lease term was of minimal bearing. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Kai was able to extend his lease just under the wire in June. Kai and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,000.
Ms A André acquired a purpose-built apartment in Milnthorpe in June 2012. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Milnthorpe with a long lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 26 May 2088. Taking into account 63 years outstanding we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
Last Christmas we were contacted by Mr V Adams , who bought a one bedroom flat in Milnthorpe in March 1998. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar residencies in Milnthorpe with a long lease were in the region of £181,600. The average amount of ground rent was £55 billed per annum. The lease terminated in 2077. Considering the 52 years outstanding we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.