As the length of the unexpired term of a Matlock domestic lease lessens so does its value and therefore the value of your property. If the residual term has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Matlock will qualify for this right; that being said a conveyancer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Matlock,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Matlock valuers.
In recent months Blake, started to get near to the 80-year mark with the lease on his purpose- built apartment in Matlock. Having purchased his flat twenty years previously, the length of the lease was of no significance. Thankfully, he became aware that he needed to take action soon on a lease extension. Blake arranged for a lease extension just under the wire in July. Blake and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,025.
Mr and Mrs. A Thompson moved into a basement flat in Matlock in April 1997. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Matlock with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced yearly. The lease terminated on 28 January 2094. Taking into account 68 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
Mrs Georgina Moore acquired a first floor flat in Matlock in March 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative flats in Matlock with an extended lease were worth £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease termination date was on 13 August 2084. Having 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.