Mildmay leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Mildmay will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Mildmay,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mildmay valuers.
Following protracted negotiations with the landlord of her garden apartment in Mildmay, Aimee initiated the lease extension process as the eighty year mark was quickly nearing. The legal work completed in February 2006. The landlord’s fees were restricted to below 700 GBP.
Last April we were called by Dr V Jackson , who bought a first floor apartment in Mildmay in November 2004. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Mildmay with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 billed yearly. The lease lapsed in 2095. Considering the 70 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mr and Mrs. H David acquired a basement apartment in Mildmay in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Mildmay with a long lease were in the region of £223,400. The average ground rent payable was £60 invoiced annually. The lease expiry date was in 2084. Having 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.