The nearer a residential lease in Milton Keynes nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Milton Keynes will qualify for this right; however a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Milton Keynes with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Milton Keynes 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.
Andrew owned a 2 bedroom apartment in Milton Keynes on the market with a lease of a few days over fifty eight years unexpired. Andrew informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
In 2009 we were approached by Dr Michael Vincent who, having acquired a basement apartment in Milton Keynes in May 1997. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Milton Keynes with a long lease were worth £257,800. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2090. Given that there were 65 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
Ms L Parker took over the lease of a basement apartment in Milton Keynes in March 2000. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Milton Keynes with a long lease were worth £191,400. The mid-range ground rent payable was £55 collected yearly. The lease lapsed on 21 January 2079. Given that there were 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including professional charges.