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 taken for granted in the first few years due to the reduction being disguised by increases in the Matlock property prices.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 slips below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Matlock will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Matlock can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 in-depth market knowledge 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.
Half a year ago Michael, started to get near to the 80-year threshold with the lease on his studio flat in Matlock. In buying his property two decades ago, the length of the lease was of minimal concern. by good luck, he recognised he needed to take action soon on a lease extension. Michael was able to extend his lease just in the nick of time last September. Michael and the landlord eventually agreed on sum of £6,000 . If the lease had fallen below 80 years, the figure would have gone up by a minimum £900.
Last Summer we were approach by Mrs Emma Baker , who bought a basement apartment in Matlock in October 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Matlock with a long lease were worth £267,600. The average amount of ground rent was £65 collected per annum. The lease termination date was on 9 May 2093. Taking into account 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of costs.
Last Spring we were approach by Dr Melissa Hernández , who purchased a one bedroom flat in Matlock in February 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical properties in Matlock with an extended lease were in the region of £206,200. The average ground rent payable was £60 collected monthly. The lease expired on 25 July 2082. Taking into account 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.