When it comes to residential leasehold premises in Mill Hill, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Leasehold owners in Mill Hill with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has under 80 years left, under the relevant legislation the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Mill Hill with over one hundred 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 Mill Hill can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Mill Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Owen, came very near to the 80-year threshold with the lease on his leasehold flat in Mill Hill. In buying his home two decades ago, the length of the lease was of no relevance. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Owen arranged for a lease extension just ahead of time in January. Owen and the freeholder via the managing agents eventually agreed on sum of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,000.
In 2010 we were phoned by Dr I Morel who, having acquired a one bedroom flat in Mill Hill in May 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Mill Hill with a long lease were worth £280,000. The average ground rent payable was £45 invoiced annually. The lease lapsed in 2096. Taking into account 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
An example of a Lease Extension case for a Mill Hill property is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case was in relation to 1 flat. The unexpired term was 71.73 years.