With a domestic leasehold premises in Matlock, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Anyone in Matlock with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Matlock lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Joseph was the the leasehold owner of a conversion apartment in Matlock on the market with a lease of just over 59 years outstanding. Joseph on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Joseph to exercise his statutory right. Joseph procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Spring we were e-mailed by Mrs R Allen , who purchased a purpose-built flat in Matlock in June 1995. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Matlock with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease end date was on 13 September 2084. Given that there were 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.
Dr George Taylor was assigned a lease of a ground floor flat in Matlock in October 2003. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Matlock with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed in 2104. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.