Why you should commence your Mildmay lease extension

Why you should commence your Mildmay lease extension today:

A Mildmay leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Mildmay residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Mildmay property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most flat owners in Mildmay will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Mildmay with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not issue a mortgage with a short lease

Mortgage companies are really clamping down as regards to homes in Mildmay with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus narrowing the amount of prospective purchasers.

What makes us experts in Mildmay lease extensions?

Irrespective of whether you are a tenant or a landlord in Mildmay,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mildmay valuers.

Mildmay Lease Extension Example Cases:

Felix, Mildmay, London,

Felix owned a studio flat in Mildmay on the market with a lease of a few days over 61 years unexpired. Felix on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.

Mildmay case:

Mr and Mrs. M Moore took over the lease of a studio flat in Mildmay in June 1997. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical properties in Mildmay with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2079. Taking into account 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.

Mildmay case:

In 2011 we were contacted by Mrs I Gómez who, having took over the lease of a first floor apartment in Mildmay in March 2011. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Mildmay with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 17 February 2099. Taking into account 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.