The re-sale value of a leasehold property in Mildmay is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be finalised ahead of the eighty year mark. Statute entitles Mildmay qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Engaging our service gives 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Sebastian, started to get near to the eighty-year mark with the lease on his garden apartment in Mildmay. In buying his home 18 years previously, the unexpired term was of no interest. by good luck, he realised he needed to take action soon on a lease extension. Sebastian extended the lease at the eleventh hour last June. Sebastian and the freeholder via the management company eventually agreed on an amount of £5,500 . If he not met the deadline, the price would have increased by a minimum £975.
In 2012 we were approached by Dr E Carter who, having owned a one bedroom apartment in Mildmay in November 2012. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Mildmay with an extended lease were in the region of £275,000. The average ground rent payable was £65 billed every twelve months. The lease concluded on 1 May 2094. Having 68 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
In 2012 we were e-mailed by Mrs Katherine Baker who, having was assigned a lease of a one bedroom apartment in Mildmay in August 2008. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative homes in Mildmay with a long lease were worth £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease expiry date was on 10 February 2083. Considering the 57 years remaining we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.