Matlock leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Matlock tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Matlock you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Matlock with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Matlock can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Matlock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her studio apartment in Matlock, Georgina initiated the lease extension process as the 80 year threshold was quickly nearing. The legal work was concluded in June 2008. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were phoned by Dr S Laurent , who was assigned a lease of a garden flat in Matlock in November 1996. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative residencies in Matlock with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2101. Having 77 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
In 2010 we were contacted by Dr Liam Smith who, having purchased a studio apartment in Matlock in September 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Matlock with a long lease were worth £265,200. The mid-range ground rent payable was £65 billed yearly. The lease lapsed in 2090. Considering the 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus expenses.