Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Milnthorpe. Inevitably, the length of lease left reduces as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Milnthorpe have the legal entitlement to extend the lease for an additional 90 years under statute. Do give careful deliberation before putting off your Milnthorpe lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
Leasehold properties in Milnthorpe with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers 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.
In recent months Charlie, came seriously close to the 80-year threshold with the lease on his basement flat in Milnthorpe. In buying his flat 19 years ago, the lease term was of no importance. by good luck, he became aware that he needed to take action soon on a lease extension. Charlie extended the lease just ahead of time in June. Charlie and the freeholder via the management company in the end agreed on a premium of £5,500 . If the lease had dipped to less than 80 years, the figure would have increased by a minimum £1,075.
In 2014 we were phoned by Mrs Y Wilson who, having completed a basement apartment in Milnthorpe in November 2004. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable homes in Milnthorpe with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced per annum. The lease expired in 2103. Having 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2013 we were called by Mr and Mrs. T Edwards who, having took over the lease of a garden apartment in Milnthorpe in January 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Milnthorpe with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease finished on 5 January 2092. Considering the 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of expenses.