The re-sale value of a leasehold property in Millom is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year cut off point. Leasehold Reform legislation enables Millom qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Millom leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold owner of a high value apartment in Millom being sold with a lease of a few days over fifty eight years unexpired. Ibrahim on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. P Díaz moved into a first floor apartment in Millom in January 1997. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar premises in Millom with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected yearly. The lease ended on 22 April 2077. Having 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.
Mr O Turner owned a garden apartment in Millom in September 2005. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable residencies in Millom with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease concluded in 2088. Given that there were 62 years left we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus legals.