Mile End leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops below 80 years - otherwise a higher premium will be payable. Leasehold owners in Mile End will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
The conveyancers that we work with handle Mile End lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy correspondence with the freeholder of her basement apartment in Mile End, Ashleigh commenced the lease extension process as the eighty year threshold was swiftly advancing. The legal work completed in September 2015. The freeholder’s costs were kept to an absolute minimum.
Mr Ibrahim Turner purchased a basement apartment in Mile End in September 2001. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical premises in Mile End with an extended lease were worth £198,800. The mid-range ground rent payable was £55 billed yearly. The lease terminated in 2081. Taking into account 55 years unexpired we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.
An example of a Freehold Enfranchisement decision for a Mile End premises is 26 Rhondda Grove in June 2009. The net price payable by the leaseholders as determined by the Tribunal was £3,015.13. This comprised £11,300 premium for the reversion less £8,284.87 costs as ordered by the County Court.