Milton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Milton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Milton you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Milton with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Milton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Milton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Austin, started to get near to the eighty-year threshold with the lease on his studio apartment in Milton. In buying his home twenty years ago, the lease term was of no concern. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Austin arranged for a lease extension at the eleventh hour in March. Austin and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If the lease had descended below 80 years, the premium would have gone up by a minimum £925.
In 2010 we were phoned by Dr John Bailey who, having took over the lease of a one bedroom apartment in Milton in May 2011. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative flats in Milton with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 billed monthly. The lease came to a finish on 4 November 2084. Given that there were 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
Mr and Mrs. G García owned a one bedroom flat in Milton in September 1996. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical premises in Milton with 100 year plus lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished on 27 November 2095. Having 71 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.