Main reasons to commence your Mill Hill lease extension

Top reasons for lease extension now:

Increase your lease and increase your Mill Hill property value

Mill Hill leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Mill Hill will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.

Mill Hill property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not grant a mortgage on a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Mill Hill?

The conveyancing solicitors that we work with procure Mill Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Mill Hill Lease Extension Case Studies:

Stanley, Mill Hill, North London,

Stanley was the the leasehold owner of a conversion apartment in Mill Hill being marketed with a lease of a little over 61 years outstanding. Stanley on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Mill Hill case:

Last month we were approach by Mr and Mrs. L Baker , who bought a recently refurbished flat in Mill Hill in August 2010. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable properties in Mill Hill with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced monthly. The lease termination date was on 13 November 2087. Having 61 years outstanding we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of legals.