When it comes to residential leasehold property in Little Mill, you are in fact renting 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 lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Little Mill with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with procure Little Mill 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.
In recent months Jonathan, came critically close to the 80-year mark with the lease on his garden apartment in Little Mill. Having purchased his flat two decades ago, the lease term was of no importance. by good luck, he became aware that he needed to take action soon on a lease extension. Jonathan extended the lease at the eleventh hour last March. Jonathan and the freeholder via the managing agents in the end settled on a premium of £5,500 . If the lease had fallen to less than 80 years, the figure would have gone up by at least £1,050.
Mrs Mia Adams purchased a one bedroom apartment in Little Mill in November 2006. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Little Mill with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected monthly. The lease terminated on 22 July 2090. Considering the 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.
Last year we were approach by Dr Samuel Edwards , who took over the lease of a basement apartment in Little Mill in February 2011. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Little Mill with a long lease were worth £189,000. The mid-range ground rent payable was £55 billed annually. The lease elapsed in 2079. Given that there were 53 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.