Lease Extensions

Tue 3rd August 2010
Clients are starting to contact us about extending their leases. This evidently a growing problem, which is affecting an increasing number of people in Milton Keynes . The addresses that have most regularly come to our attention are in:
  • Rowle Close, Stantonbury;
  • Clay Hill, Two Mile Ash;
  • St Margaret’s Court, Bletchley;
  • Bute Brae, Bletchley; and
  • Caithness Court , Bletchley.
  • Inevitably the list is going to get longer.

The problem is this. Mortgages are increasingly repayable over 35 years. Mortgage lenders expect to lend on a lease that is at least 30 years longer in duration than the mortgage term. So a lease with 65 years left to run is often the minimum that will be acceptable for mortgage purposes. Given that, on average most people move at least every 7 years most buyers will want to see not less than 72 years on the lease before they buy so that they have 65 years or more on the lease when they come to sell.
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