Main reasons to start your Mildmay lease extension

Why you should start your Mildmay lease extension today:

A Mildmay leasehold property depreciates with the years remaining on the lease.

The only way is down when it comes to Mildmay lease terms. Mildmay leaseholds that have a residual term less than than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.

An extended lease has roughly the same value as a freehold

Leasehold properties in Mildmay with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to loan monies with a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Mildmay lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Mildmay 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.

Mildmay Lease Extension Example Cases:

Eli, Mildmay, London

Last Autumn Eli, started to get close to the 80-year threshold with the lease on his one bedroom flat in Mildmay. Having bought his home 19 years previously, the unexpired term was of little importance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Eli extended the lease at the eleventh hour last July. Eli and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £1,125.

Mildmay case:

Mr and Mrs. M Dupont bought a purpose-built apartment in Mildmay in August 1998. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative residencies in Mildmay with a long lease were worth £208,600. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2083. Taking into account 57 years remaining we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.

Mildmay case:

Mrs Francesca Parker completed a studio flat in Mildmay in April 1998. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Mildmay with a long lease were worth £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed in 2103. Taking into account 77 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.