The re-sale value of a leasehold property in Milton is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year threshold. Leasehold Reform legislation enables Milton qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Milton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Milton,the lease extension lawyers 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.
Subsequent to unsuccessful correspondence with the freeholder of her ground floor apartment in Milton, Poppy started the lease extension process as the eighty year threshold was swiftly advancing. The legal work was concluded in June 2010. The freeholder’s charges were restricted to below 450 pounds.
Dr L Reed acquired a recently refurbished apartment in Milton in March 2011. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable premises in Milton with a long lease were in the region of £208,200. The average amount of ground rent was £65 collected quarterly. The lease terminated on 1 November 2087. Considering the 61 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.
Last Spring we were approach by Mr Hugo Mitchell , who completed a first floor flat in Milton in March 1997. We are asked if we could approximate the price would be for a 90 year lease extension. Identical properties in Milton with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2098. Having 72 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.