When it comes to domestic leasehold premises in Matlock, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Residents in Matlock with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once a lease has below eighty years outstanding, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Matlock with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Matlock,the lease extension solicitors that we work with will always be willing 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 the wake of eight months of unsuccessful correspondence with the freeholder of her first floor apartment in Matlock, Sarah started the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction completed in July 2013. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Dr Ali Dupont who, having acquired a one bedroom apartment in Matlock in August 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Matlock with an extended lease were in the region of £248,000. The average amount of ground rent was £65 billed every twelve months. The lease concluded in 2089. Given that there were 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
Mr Joseph Adams moved into a one bedroom flat in Matlock in November 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Matlock with an extended lease were worth £181,600. The average ground rent payable was £55 billed yearly. The lease terminated on 20 July 2078. Given that there were 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.