The market value of Milton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than eighty years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Engaging our service gives you better control over the value of your Milton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Riley, came critically near to the 80-year mark with the lease on his garden flat in Milton. Having purchased his home two decades ago, the lease term was of minimal relevance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Riley extended the lease just under the wire last August. Riley and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had dipped to less than 80 years, the figure would have increased by at least £1,000.
Ms V Michel acquired a garden apartment in Milton in April 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable homes in Milton with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed on 2 January 2092. Taking into account 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.
Dr Muhammad Richardson owned a studio apartment in Milton in March 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable residencies in Milton with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 2 July 2103. Considering the 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.