Unfortunately that a Matlock residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Matlock property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Matlock will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally accepted that a property with more than one hundred 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 unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Matlock,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Matlock valuers.
Jason owned a 2 bedroom flat in Matlock on the market with a lease of just over 59 years left. Jason on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Summer we were called by Mrs C Jones , who owned a garden apartment in Matlock in July 2011. The question was if we could approximate the price could be for a 90 year lease extension. Similar homes in Matlock with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired on 19 April 2103. Given that there were 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
In 2014 we were approached by Mr and Mrs. T Pérez who, having was assigned a lease of a one bedroom apartment in Matlock in May 1995. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative premises in Matlock with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease ended on 8 July 2092. Considering the 66 years outstanding we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.