As the the remaining lease term of a Mildmay residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Mildmay will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Mildmay with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Retaining our service gives you increased control over the value of your Mildmay leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold proprietor of a conversion apartment in Mildmay being sold with a lease of fraction over sixty years remaining. Finley on an informal basis contacted his freeholder a well known Manchester-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 at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Finley to exercise his statutory right. Finley obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were contacted by Dr Cameron López who, having bought a purpose-built apartment in Mildmay in November 2003. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable premises in Mildmay with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 collected per annum. The lease concluded in 2081. Having 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
Last August we were e-mailed by Dr L Lefèvre , who owned a studio apartment in Mildmay in July 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical homes in Mildmay with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2101. Taking into account 75 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.