As the the remaining lease term of a Mill Hill domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Mill Hill will qualify for this right; however a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Mill Hill with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Mill Hill,the lease extension lawyers 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 Mill Hill valuers.
In recent months Thomas, came very close to the eighty-year threshold with the lease on his leasehold apartment in Mill Hill. In buying his home twenty years previously, the unexpired term was of minimal importance. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Thomas was able to extend his lease just in the nick of time in July. Thomas and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,075.
Mr Daniel Cook owned a first floor apartment in Mill Hill in February 2001. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Mill Hill with a long lease were worth £189,000. The average amount of ground rent was £55 billed annually. The lease came to a finish on 9 February 2077. Given that there were 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.
An example of a Lease Extension decision for a Mill Hill residence is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case related to 1 flat. The remaining number of years on the lease was 71.73 years.