When it comes to domestic leasehold premises in Mildmay, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Mildmay with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant Act the landlord can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|Lloyds TSB Scotland||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
Retaining our service will provide you increased control over the value of your Mildmay leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her studio flat in Mildmay, Tia started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was concluded in July 2005. The landlord’s charges were kept to an absolute minimum.
In 2012 we were phoned by Dr Lauren Cooper who, having completed a one bedroom apartment in Mildmay in May 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Mildmay with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed yearly. The lease lapsed in 2074. Considering the 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.
Last Spring we were called by Dr P Taylor , who was assigned a lease of a garden flat in Mildmay in March 1996. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical residencies in Mildmay with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 16 January 2094. Considering the 72 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.