With a domestic leasehold premises in Mildmay, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Mildmay with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has below eighty years remaining, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Mildmay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Rory, came critically close to the eighty-year mark with the lease on his one bedroom flat in Mildmay. Having purchased his flat 18 years previously, the length of the lease was of little relevance. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Rory was able to extend his lease just under the wire in September. Rory and the landlord ultimately settled on an amount of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £875.
Mr and Mrs. B Baker purchased a garden flat in Mildmay in November 2006. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Similar properties in Mildmay with 100 year plus lease were valued about £260,200. The average ground rent payable was £65 invoiced quarterly. The lease end date was on 27 May 2091. Having 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.
Last Autumn we were e-mailed by Dr B Petit , who took over the lease of a ground floor flat in Mildmay in March 1995. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative residencies in Mildmay with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed monthly. The lease ran out in 2080. Taking into account 55 years unexpired we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.