On the balance of probabilities if you own a flat in Milton Keynes you actually own a long leasehold interest over your property
Leasehold premises 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 is worth the same as a freehold interest in your property. In such situations 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. |
| 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. |
| 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 will provide you enhanced control over the value of your Milton Keynes leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Milton Keynes, Isobel initiated the lease extension process as the 80 year threshold was quickly coming. The lease extension was concluded in July 2005. The landlord’s fees were kept to an absolute minimum.
In 2012 we were approached by Dr E Moreau who, having bought a purpose-built flat in Milton Keynes in March 1999. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Milton Keynes with 100 year plus lease were valued around £184,000. The mid-range ground rent payable was £55 billed per annum. The lease terminated in 2078. Given that there were 53 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.
Last year we were called by Mrs Y Evans , who acquired a studio apartment in Milton Keynes in February 2002. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparative properties in Milton Keynes with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 2 June 2098. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.