Mildmay Lease Extension - Free Consultation

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Main reasons to start your Mildmay lease extension


Why you should start your Mildmay lease extension today:

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

The market value of Mildmay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than 80 years

Mildmay property with a lease extension is almost the same value as a freehold

Leasehold residencies in Mildmay with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Mortgage Lenders are distinct in their lending requirements. Some set the bar at 75 years left on the lease; others may be happy with anything in excess seventy years. With less than sixty years, it may be challenging to obtain a mortgage in the first place.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
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
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.

Get in touch with one of our Mildmay lease extension solicitors or enfranchisement solicitors

Retaining our service gives you better control over the value of your Mildmay leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Mildmay Lease Extension Case Summaries:

Liam, Mildmay, London

Last October Liam, came perilously near to the 80-year threshold with the lease on his garden apartment in Mildmay. Having purchased his property two decades ago, the unexpired term was of no bearing. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Liam was able to extend his lease just under the wire last May. Liam and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If the lease had fallen to less than eighty years, the amount would have become more exhorbitant by a minimum £1,075.

Mildmay case:

In 2014 we were approached by Mr and Mrs. N Campbell who, having owned a basement flat in Mildmay in September 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative flats in Mildmay with an extended lease were worth £285,000. The average ground rent payable was £45 collected yearly. The lease ran out in 2097. Considering the 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.

Mildmay case:

Last month we were e-mailed by Mr and Mrs. L Brown , who acquired a first floor flat in Mildmay in February 2010. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative flats in Mildmay with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was in 2086. Considering the 61 years left we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.