Unfortunately that a Matlock residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Matlock property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Matlock will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Matlock with in excess of one hundred years left on the lease are sometimes 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 purchasing the freehold 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 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Matlock leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Caleb, came perilously near to the 80-year threshold with the lease on his first floor apartment in Matlock. In buying his home two decades ago, the unexpired term was of little importance. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Caleb arranged for a lease extension just under the wire last March. Caleb and the freeholder via the management company subsequently agreed on sum of £6,000 . If he not met the deadline, the amount would have increased by a minimum £850.
In 2014 we were contacted by Ms Robyn Sharif who, having completed a one bedroom apartment in Matlock in March 2007. We are asked if we could approximate the price would be for a 90 year lease extension. Similar properties in Matlock with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 27 September 2097. Taking into account 71 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
In 2013 we were contacted by Mrs Sarah Leroy who, having completed a first floor flat in Matlock in July 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Matlock with 100 year plus lease were valued about £230,800. The mid-range ground rent payable was £60 collected monthly. The lease end date was in 2086. Taking into account 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of fees.