Milton leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Milton will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Milton with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Milton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Milton valuers.
Trailing unsuccessful discussions with the freeholder of her one bedroom apartment in Milton, Isabella commenced the lease extension process as the 80 year deadline was rapidly advancing. The lease extension was finalised in April 2006. The landlord’s fees were restricted to slightly above 600 GBP.
In 2009 we were approached by Mr Jack Smith who, having took over the lease of a purpose-built flat in Milton in February 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Milton with a long lease were worth £173,800. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2080. Considering the 55 years remaining we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
Last month we were approach by Mrs G Mitchell , who owned a one bedroom flat in Milton in November 1999. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable premises in Milton with an extended lease were worth £235,200. The average ground rent payable was £45 collected monthly. The lease expired in 2091. Having 66 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.