Mildmay leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Mildmay residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Mildmay you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Mildmay with over 100 years remaining 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Mildmay,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 in-depth market knowledge and the close ties they enjoy with Mildmay valuers.
Jayden was the the leasehold proprietor of a studio flat in Mildmay on the market with a lease of just over 72 years remaining. Jayden informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. P Girard owned a garden apartment in Mildmay in March 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Mildmay with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected yearly. The lease finished on 20 May 2105. Considering the 80 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2012 we were e-mailed by Mr A García who, having bought a purpose-built flat in Mildmay in July 2003. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Mildmay with an extended lease were valued around £275,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 9 April 2094. Considering the 69 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.