With a domestic leasehold premises in Matlock, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Anyone in Matlock with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has less than 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire Building Society | 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. |
Engaging our service will provide you better control over the value of your Matlock leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Oliver, came precariously near to the 80-year threshold with the lease on his leasehold apartment in Matlock. Having purchased his property two decades ago, the lease term was of little interest. Luckily, he noticed he needed to take action soon on a lease extension. Oliver arranged for a lease extension at the eleventh hour last April. Oliver and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £900.
In 2012 we were phoned by Mrs Kate Patel who, having moved into a newly refurbished apartment in Matlock in May 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative flats in Matlock with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease expired in 2104. Taking into account 78 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2009 we were phoned by Mrs S Martin who, having moved into a basement apartment in Matlock in January 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Matlock with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 billed quarterly. The lease concluded on 11 November 2093. Having 67 years unexpired we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including professional charges.