The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Mill Hill have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do think carefully before delaying your Mill Hill lease extension. Shelving that expense now simply increases the amount you will eventually have to pay to extend the lease.
Leasehold properties in Mill Hill with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Mill Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago William, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Mill Hill. Having bought his property twenty years previously, the lease term was of little importance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. William arranged for a lease extension just in the nick of time in June. William and the freeholder subsequently agreed on sum of £6,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,075.
Last month we were approach by Dr F White , who took over the lease of a garden apartment in Mill Hill in November 1995. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable residencies in Mill Hill with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 billed yearly. The lease terminated in 2099. Considering the 73 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired lease term was 71.73 years.