The only way is down when it comes to Mildmay lease terms. Mildmay flats that have a remaining term fewer than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
|Accord Mortgages||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.|
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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
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.
Oscar owned a conversion apartment in Mildmay being sold with a lease of fraction over 72 years remaining. Oscar informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Christmas we were approach by Mr and Mrs. L Rogers , who completed a first floor flat in Mildmay in June 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Mildmay with a long lease were worth £201,200. The mid-range amount of ground rent was £55 collected monthly. The lease ended on 20 March 2077. Having 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.
Last Winter we were contacted by Mr and Mrs. E Thomas , who took over the lease of a one bedroom flat in Mildmay in October 1999. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical residencies in Mildmay with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected per annum. The lease terminated in 2097. Considering the 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.