Shared Ownership - Distinctly lacking in MPC

Thu 1st September 2011
On the barren shared ownership plains of Milton Keynes thousands of Lesser Spotted Shared Ownership Leases wander in herds across the landscape. They were born in better times when mortgage funding was thick and lush. Now they languish and in all probability represent a species on the verge of extinction. It’s a toss up between the Giant Panda and the “Lesser Spotted” as to which will die out first.

So where does the threat of extinction come from? It comes from a drought in mortgage funds that has become more pronounced following the so-called “credit crunch”. There is a well of funds that could provide life for these ailing creatures, but it is controlled by the Council of Mortgage Lenders. They will only extend relief if leases are branded with the magic initials “MPC”. The Lesser Spotted is not so branded.
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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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