The re-sale value of a leasehold property in Matlock depends on how many years the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded well before the 80 year threshold. Current legislation entitles Matlock qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Matlock with more than one hundred years remaining 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Yorkshire Building Society |
Engaging our service will provide you increased control over the value of your Matlock leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
James owned a 2 bedroom flat in Matlock on the market with a lease of a few days over 59 years remaining. James informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were James to invoke his statutory right. James procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2010 we were e-mailed by Mr and Mrs. D Walker who, having moved into a studio apartment in Matlock in October 2002. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative properties in Matlock with an extended lease were worth £290,000. The average amount of ground rent was £45 billed quarterly. The lease end date was in 2098. Taking into account 72 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Dr Evan Walker completed a basement flat in Matlock in September 2007. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Identical premises in Matlock with an extended lease were valued around £235,600. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 11 August 2088. Taking into account 62 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.