Milton Keynes Village leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Milton Keynes Village residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Milton Keynes Village you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Milton Keynes Village with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Milton Keynes Village can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge 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.
In recent months Oliver, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Milton Keynes Village. In buying his home twenty years previously, the lease term was of no relevance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Oliver was able to extend his lease at the eleventh hour in May. Oliver and the landlord eventually settled on sum of £5,500 . If the lease had slipped lower than eighty years, the amount would have gone up by a minimum £950.
Dr V Bailey was assigned a lease of a one bedroom flat in Milton Keynes Village in February 1995. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable residencies in Milton Keynes Village with a long lease were worth £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease expired in 2094. Considering the 69 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
In 2013 we were contacted by Dr Caleb Torres who, having acquired a ground floor flat in Milton Keynes Village in August 2001. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Milton Keynes Village with a long lease were valued around £216,000. The average amount of ground rent was £60 invoiced annually. The lease finished in 2083. Considering the 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.