When it comes to residential leasehold property in Milton Keynes Village, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Milton Keynes Village with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years remaining, under the current Act the freeholder can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Milton Keynes Village with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Milton Keynes Village leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Daniel, came perilously close to the 80-year threshold with the lease on his studio apartment in Milton Keynes Village. Having purchased his flat twenty years previously, the unexpired term was of no relevance. Thankfully, he realised he needed to take steps soon on a lease extension. Daniel was able to extend his lease just under the wire last April. Daniel and the freeholder via the management company eventually settled on the final figure of £5,000 . If the lease had dropped below eighty years, the sum would have increased by a minimum £1,075.
In 2013 we were called by Dr Isabella Reed who, having purchased a studio flat in Milton Keynes Village in November 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Milton Keynes Village with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired on 5 May 2100. Given that there were 74 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2009 we were called by Mr and Mrs. M Cox who, having owned a one bedroom apartment in Milton Keynes Village in August 1995. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable residencies in Milton Keynes Village with a long lease were valued around £243,000. The average ground rent payable was £65 collected every twelve months. The lease finished on 8 March 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of legals.