Mildmay residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Mildmay valuers.
Last year Seth, came seriously near to the eighty-year mark with the lease on his ground floor flat in Mildmay. In buying his flat 18 years ago, the lease term was of little importance. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Seth was able to extend his lease just ahead of time in July. Seth and the freeholder via the management company eventually settled on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by at least £1,150.
Mr B Flores purchased a purpose-built apartment in Mildmay in January 2001. The dilemma was 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 £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed on 8 September 2104. Having 79 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Last month we were approach by Dr B Rivera , who bought a one bedroom flat in Mildmay in May 1996. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative properties in Mildmay with a long lease were in the region of £275,000. The average ground rent payable was £65 collected annually. The lease came to a finish on 5 July 2093. Having 68 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.