When it comes to domestic leasehold premises in Milton Keynes Village, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years left. Leasehold owners in Milton Keynes Village with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Milton Keynes Village with more than 100 years unexpired on the lease are often referred to as ‘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 freehold unless savings on ground rent and maintenance charges justify 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Milton Keynes Village can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 Keynes Village lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her basement flat in Milton Keynes Village, Isabella started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The lease extension was finalised in January 2009. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. B Bennett who, having moved into a garden flat in Milton Keynes Village in April 2012. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical properties in Milton Keynes Village with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 collected annually. The lease lapsed in 2082. Taking into account 57 years left we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.
Last month we were phoned by Ms Molly Robinson , who owned a garden apartment in Milton Keynes Village in February 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative premises in Milton Keynes Village with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed monthly. The lease finished on 9 May 2102. Considering the 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.