Milton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Milton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Milton you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Milton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Milton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful discussions with the landlord of her basement flat in Milton, Freya initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction completed in May 2006. The landlord’s fees were restricted to approximately 700 GBP.
Last Christmas we were called by Mr and Mrs. N Collins , who took over the lease of a garden apartment in Milton in August 1995. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar flats in Milton with an extended lease were valued around £225,400. The average ground rent payable was £45 billed yearly. The lease elapsed in 2090. Given that there were 64 years left we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus expenses.
Last Spring we were contacted by Mr J Nguyen , who owned a one bedroom apartment in Milton in October 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Milton with a long lease were valued around £270,000. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2101. Having 75 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.