On the balance of probabilities if you own a flat in Mildmay you actually own a long leasehold interest over your property
Leasehold residencies in Mildmay with in excess of one hundred years unexpired 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
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 experience and the close ties they enjoy with Mildmay valuers.
Freddie owned a high value flat in Mildmay on the market with a lease of just over 61 years left. Freddie informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. R Norbert purchased a one bedroom apartment in Mildmay in February 2002. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Mildmay with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed on 15 June 2103. Having 78 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
In 2012 we were e-mailed by Mr and Mrs. S Nguyen who, having purchased a studio apartment in Mildmay in February 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Mildmay with a long lease were worth £267,600. The average ground rent payable was £65 billed annually. The lease terminated on 13 October 2092. Taking into account 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including expenses.