The only way is down when it comes to Matlock lease terms. Matlock properties that have a lease term less than than 80 years will reduce in value even faster, and the cost of extending your lease will increase.
Leasehold properties in Matlock with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Matlock can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 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.
In recent months Jacob, came precariously near to the 80-year threshold with the lease on his basement flat in Matlock. In buying his property two decades ago, the length of the lease was of minimal concern. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Jacob extended the lease just under the wire in May. Jacob and the landlord ultimately agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the price would have gone up by at least £975.
In 2013 we were contacted by Mr and Mrs. B Wood who, having owned a one bedroom apartment in Matlock in March 2010. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Matlock with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 12 March 2105. Given that there were 79 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Dr S Taylor moved into a studio flat in Matlock in June 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Matlock with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed in 2094. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.