With a long leasehold property in Milnthorpe, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Milnthorpe with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Milnthorpe with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Milnthorpe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Milnthorpe valuers.
Logan was the the leasehold owner of a high value apartment in Milnthorpe being marketed with a lease of a few days over 72 years unexpired. Logan informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last month we were contacted by Mr and Mrs. J Torres , who completed a newly refurbished flat in Milnthorpe in August 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical properties in Milnthorpe with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2100. Taking into account 76 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Mr Rory Gray owned a garden apartment in Milnthorpe in September 2000. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical residencies in Milnthorpe with a long lease were in the region of £257,800. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 25 January 2089. Considering the 65 years unexpired we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.