Matlock leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Matlock will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Matlock,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Matlock valuers.
16 months ago Ibrahim, started to get near to the 80-year threshold with the lease on his ground floor apartment in Matlock. In buying his home 18 years previously, the lease term was of minimal importance. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Ibrahim extended the lease at the eleventh hour in July. Ibrahim and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,000.
In 2011 we were called by Mrs Yasmin Gómez who, having acquired a one bedroom flat in Matlock in May 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Matlock with a long lease were in the region of £213,600. The average ground rent payable was £60 collected yearly. The lease concluded in 2082. Considering the 57 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.
Dr Kelsey Thomas purchased a one bedroom apartment in Matlock in July 2008. The question was if we could estimate the price could be to extend the lease by an additional years. Identical premises in Matlock with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease concluded on 9 May 2102. Taking into account 77 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.