Main reasons to commence your Mildmay lease extension

Top reasons for lease extension now:

Increase your lease and increase your Mildmay property value

The re-sale value of a leasehold property in Mildmay is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year cut off point. Current legislation enables Mildmay qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

Mildmay property with a lease extension is almost the same value as a freehold

Leasehold premises in Mildmay with more than 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not lend with a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once the remaining lease term falls under a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are seeking to remortgage your Mildmay home.

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

Irrespective of whether you are a tenant or a landlord in Mildmay,the lease extension lawyers 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 Mildmay valuers.

Mildmay Lease Extension Example Cases:

Chloe, Mildmay, London,

In the wake of eight months of protracted correspondence with the freeholder of her leasehold flat in Mildmay, Chloe started the lease extension process as the eighty year mark was swiftly approaching. The transaction was finalised in August 2006. The landlord’s charges were negotiated to below 650 pounds.

Mildmay case:

Last February we were approach by Dr Finn Watson , who purchased a one bedroom flat in Mildmay in November 2011. The question was if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Mildmay with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected yearly. The lease expiry date was on 11 July 2098. Taking into account 72 years remaining we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.

Mildmay case:

Last year we were e-mailed by Dr T Allen , who acquired a studio apartment in Mildmay in September 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Mildmay with a long lease were valued about £233,200. The average ground rent payable was £60 invoiced annually. The lease finished in 2087. Taking into account 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.