Little Mill leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Flat owners in Little Mill will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Lease extensions in Little Mill can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Little Mill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the landlord of her studio apartment in Little Mill, Sian commenced the lease extension process as the 80 year threshold was swiftly approaching. The legal work was concluded in August 2008. The landlord’s fees were kept to an absolute minimum.
Dr Laura Roberts acquired a one bedroom flat in Little Mill in August 1999. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical properties in Little Mill with a long lease were worth £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease end date was in 2103. Having 78 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Last Summer we were approach by Mr and Mrs. T Hall , who was assigned a lease of a ground floor flat in Little Mill in June 2001. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical flats in Little Mill with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease expired on 10 February 2092. Having 67 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of costs.