It’s an underpublicised truth that a Mildmay residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Mildmay property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most flat owners in Mildmay will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety 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 |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
Lease extensions in Mildmay can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Mildmay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Noah, started to get close to the eighty-year mark with the lease on his garden flat in Mildmay. In buying his property two decades ago, the lease term was of little bearing. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Noah arranged for a lease extension just under the wire last April. Noah and the freeholder eventually agreed on sum of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £850.
In 2013 we were called by Mr and Mrs. D Wilson who, having took over the lease of a first floor flat in Mildmay in January 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Mildmay with 100 year plus lease were valued about £210,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended in 2106. Considering the 80 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2009 we were contacted by Mr and Mrs. J Martinez who, having was assigned a lease of a one bedroom apartment in Mildmay in June 2006. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical homes in Mildmay with a long lease were valued around £280,000. The average ground rent payable was £45 billed quarterly. The lease ran out in 2095. Taking into account 69 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.