Mildenhall leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Mildenhall will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Mildenhall with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Mildenhall,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mildenhall valuers.
Aiden was the the leasehold owner of a high value flat in Mildenhall on the market with a lease of a little over sixty years remaining. Aiden on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were contacted by Mrs Anna Mason who, having acquired a ground floor flat in Mildenhall in May 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Mildenhall with an extended lease were valued about £246,800. The average amount of ground rent was £60 billed quarterly. The lease finished in 2076. Having 50 years left we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 not including expenses.
Dr D García moved into a garden apartment in Mildenhall in June 2012. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Mildenhall with a long lease were worth £208,200. The mid-range ground rent payable was £65 billed yearly. The lease ended on 14 July 2087. Taking into account 61 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.