As the length of the unexpired term of a Mildmay domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Mildmay will qualify for this right; that being said a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her two bedroom flat in Mildmay, Lily initiated the lease extension process as the eighty year deadline was swiftly coming. The legal work completed in June 2015. The landlord’s costs were restricted to slightly above 700 pounds.
In 2011 we were called by Mr and Mrs. S Morgan who, having moved into a recently refurbished apartment in Mildmay in August 2004. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable premises in Mildmay with a long lease were worth £295,000. The average ground rent payable was £45 invoiced quarterly. The lease finished on 15 November 2099. Considering the 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
In 2013 we were e-mailed by Dr G Scott who, having took over the lease of a ground floor flat in Mildmay in September 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Mildmay with an extended lease were worth £243,000. The average amount of ground rent was £65 billed quarterly. The lease terminated on 4 July 2088. Having 63 years left we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.