Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Mildenhall. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Mildenhall have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give due deliberation before putting off your Mildenhall lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 experts that we work with will always be willing 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.
Off the back of protracted negotiations with the freeholder of her leasehold apartment in Mildenhall, Samantha initiated the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was finalised in April 2013. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. F Kelly who, having was assigned a lease of a garden apartment in Mildenhall in August 2004. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar flats in Mildenhall with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired in 2088. Taking into account 62 years remaining we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including fees.
In 2011 we were phoned by Mr Lucas Lewis who, having bought a garden flat in Mildenhall in June 2010. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Similar flats in Mildenhall with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2099. Given that there were 73 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.