The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Milton can extend the lease for a further 90 years under statute. Please think carefully before delaying your Milton lease extension. Shelving that expense today simply increases the premium you will eventually have to pay for a lease extension.
Leasehold properties in Milton with in excess of 100 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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 lawyer we work with provide it.
Muhammad was the the leasehold owner of a conversion apartment in Milton being marketed with a lease of just over 72 years left. Muhammad on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mr and Mrs. G Edwards owned a one bedroom flat in Milton in March 2000. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Similar homes in Milton with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed on 19 August 2093. Taking into account 68 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last July we were phoned by Mr Eli Laurent , who acquired a first floor flat in Milton in July 2004. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical premises in Milton with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected annually. The lease expiry date was in 2104. Considering the 79 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.