Milton residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Milton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
Following lengthy negotiations with the freeholder of her garden flat in Milton, Kelsey commenced the lease extension process as the eighty year mark was swiftly approaching. The legal work was concluded in June 2005. The landlord’s charges were negotiated to under 450 GBP.
Last Summer we were approach by Dr Caleb Brown , who acquired a purpose-built flat in Milton in May 2011. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative residencies in Milton with an extended lease were in the region of £191,000. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated in 2082. Given that there were 58 years left we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including costs.
Last year we were phoned by Dr Alfie Nguyen , who took over the lease of a purpose-built apartment in Milton in January 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Milton with an extended lease were valued around £250,000. The average ground rent payable was £50 collected monthly. The lease elapsed in 2093. Having 69 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.