Little Mill leases on domestic deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Flat owners in Little Mill will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Little Mill with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Little Mill leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Luke, came seriously near to the 80-year threshold with the lease on his first floor apartment in Little Mill. In buying his flat 18 years previously, the length of the lease was of no relevance. by good luck, he realised he needed to take steps soon on a lease extension. Luke was able to extend his lease just in the nick of time last April. Luke and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had gone below eighty years, the premium would have increased by a minimum £1,025.
Last March we were phoned by Mrs P Hill , who took over the lease of a garden apartment in Little Mill in October 1996. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Similar residencies in Little Mill with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated on 21 September 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.
In 2014 we were e-mailed by Mr Teddy Cooper who, having took over the lease of a purpose-built flat in Little Mill in October 1997. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Little Mill with 100 year plus lease were valued around £225,800. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2086. Given that there were 60 years remaining we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus legals.