Why you should commence your Matlock lease extension

Main reasons to commence your Matlock lease extension today:

A Matlock leasehold property depreciates with the years remaining on the lease.

The value of Matlock leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than eighty years

Matlock property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to lend with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Matlock lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with undertake 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 conveyancer we work with provide it.

Matlock Lease Extension Example Cases:

Harriet, Matlock, Derbyshire,

Subsequent to unsuccessful discussions with the landlord of her basement flat in Matlock, Harriet started the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was finalised in July 2008. The landlord’s charges were kept to an absolute minimum.

Matlock case:

Last Spring we were e-mailed by Mr and Mrs. W King , who owned a one bedroom flat in Matlock in May 1995. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Matlock with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 collected quarterly. The lease expired in 2080. Given that there were 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.

Matlock case:

Last Spring we were approach by Mr and Mrs. V Mason , who took over the lease of a purpose-built apartment in Matlock in January 1998. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable flats in Matlock with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish on 6 January 2100. Taking into account 75 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.