Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Millwall. Inevitably, the length of lease remaining reduces as time goes by. This is often ignored and only becomes a problem when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Millwall have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give due attention before delaying your Millwall lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Millwall,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 Millwall valuers.
In the wake of 9 months of protracted correspondence with the freeholder of her basement flat in Millwall, Georgina initiated the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension was concluded in March 2012. The landlord’s costs were negotiated to less than 700 GBP.
Last month we were e-mailed by Dr I Richardson , who bought a garden apartment in Millwall in June 2010. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Millwall with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease expired in 2092. Taking into account 67 years unexpired we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Millwall flat is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The unexpired term as at the valuation date was 101.61 years.