The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Millom have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Millom lease extension. Postponing that expense today simply increases the amount you will ultimately have to pay to extend the lease.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Millom,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 Millom valuers.
In recent months Stanley, came precariously close to the eighty-year threshold with the lease on his one bedroom flat in Millom. Having purchased his property two decades ago, the unexpired term was of minimal bearing. by good luck, he noticed he needed to take steps soon on a lease extension. Stanley was able to extend his lease just under the wire in March. Stanley and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £875.
Dr B Gray took over the lease of a garden apartment in Millom in October 2006. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Millom with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 18 August 2095. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr G Lewis bought a one bedroom flat in Millom in May 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Millom with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded on 17 October 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.