Matlock leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Matlock residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Matlock you should see if your lease has between 70 and 90 years remaining. 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 pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Matlock can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge 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.
In the wake of 6 months of unsuccessful discussions with the landlord of her ground floor apartment in Matlock, Georgina started the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension completed in April 2013. The freeholder’s costs were restricted to less than six hundred pounds.
Mr and Mrs. M Garcia owned a newly refurbished flat in Matlock in March 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Matlock with a long lease were valued around £206,200. The mid-range ground rent payable was £60 collected monthly. The lease elapsed in 2082. Taking into account 56 years unexpired we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus costs.
Mr and Mrs. F Morgan completed a newly refurbished apartment in Matlock in June 2004. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable premises in Matlock with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2103. Given that there were 77 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.