Unfortunately that a Millom residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Millom property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Millom will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Millom,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Millom valuers.
In 2014 Archie, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Millom. In buying his home two decades ago, the unexpired term was of no importance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Archie extended the lease just under the wire last May. Archie and the freeholder in the end agreed on a premium of £5,000 . If the lease had dipped to less than eighty years, the premium would have gone up by at least £1,150.
Last month we were approach by Mrs S Sánchez , who purchased a one bedroom flat in Millom in September 2005. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Millom with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2085. Considering the 59 years left we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.
Dr Stanley Morris was assigned a lease of a garden apartment in Millom in July 1998. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative homes in Millom with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expiry date was in 2096. Having 70 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.