Little Mill leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, 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 dips lower than 80 years - otherwise a higher amount will be due. Flat owners in Little Mill will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Little Mill,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Little Mill valuers.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold flat in Little Mill, Amy initiated the lease extension process as the 80 year deadline was quickly coming. The lease extension was finalised in July 2009. The landlord’s fees were negotiated to less than 700 GBP.
Mrs T Ali acquired a newly refurbished apartment in Little Mill in May 2008. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical flats in Little Mill with a long lease were worth £191,400. The average amount of ground rent was £55 billed monthly. The lease ended on 19 April 2079. Taking into account 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including expenses.
In 2010 we were e-mailed by Mrs Katherine Sánchez who, having bought a one bedroom flat in Little Mill in September 2005. The question was if we could approximate the price could be to extend the lease by an additional years. Comparable premises in Little Mill with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish on 27 October 2099. Taking into account 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.