Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Matlock. Clearly, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Matlock have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful deliberation before delaying your Matlock lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Matlock with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Virgin |
Lease extensions in Matlock can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 dealing with Matlock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley was the the leasehold owner of a conversion apartment in Matlock on the market with a lease of fraction over 59 years left. Finley informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Spring we were e-mailed by Mr and Mrs. F Parker , who purchased a one bedroom flat in Matlock in January 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Matlock with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 billed monthly. The lease expiry date was on 14 September 2080. Given that there were 54 years remaining we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including expenses.
In 2009 we were contacted by Mr Benjamin Bell who, having purchased a basement apartment in Matlock in April 2005. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Matlock with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired on 17 September 2100. Taking into account 74 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.