When it comes to long leasehold property in Milton, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Anyone in Milton with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Milton with in excess of one hundred years remaining 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Milton 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 conveyancer we work with provide it.
Trailing protracted discussions with the landlord of her studio flat in Milton, Georgina commenced the lease extension process as the eighty year deadline was swiftly approaching. The legal work was finalised in January 2006. The landlord’s costs were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. O González , who took over the lease of a ground floor flat in Milton in May 2011. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in Milton with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected monthly. The lease finished in 2076. Having 50 years remaining we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including costs.
Last July we were e-mailed by Mr Ibrahim Ward , who owned a one bedroom apartment in Milton in February 2005. The question was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative homes in Milton with a long lease were worth £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended in 2087. Having 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.