The nearer a domestic lease in Mill Hill nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Mill Hill will qualify for this right; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the freeholder of her purpose-built flat in Mill Hill, Emma commenced the lease extension process as the 80 year threshold was swiftly advancing. The transaction was finalised in June 2010. The landlord’s charges were restricted to about 500 GBP.
Last Spring we were called by Mr and Mrs. B André , who moved into a one bedroom flat in Mill Hill in June 1995. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical residencies in Mill Hill with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish on 13 June 2094. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension case for a Mill Hill property 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 was in relation to 1 flat. The unexpired term as at the valuation date was 71.73 years.