There is no doubt about it a leasehold flat or house in Millom is a wasting asset as a result of the diminishing lease term. If the lease has, more than one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Millom will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Millom can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Millom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year John, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in Millom. In buying his flat 19 years ago, the length of the lease was of minimal concern. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. John was able to extend his lease just under the wire last June. John and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £950.
Last Summer we were e-mailed by Dr E García , who purchased a garden flat in Millom in November 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Millom with 100 year plus lease were worth £173,800. The average ground rent payable was £65 billed yearly. The lease terminated in 2081. Taking into account 55 years left we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
Last Autumn we were e-mailed by Mrs Natalie Edwards , who moved into a ground floor flat in Millom in January 2011. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative flats in Millom with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed yearly. The lease came to a finish on 1 September 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.