Unfortunately that a Peak District residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Peak District property prices.Once your lease gets to 85ish years, you need to 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 lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Peak District will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases 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 from beginning to end of the process.
Leasehold residencies in Peak District with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Peak District leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alfie owned a 2 bedroom flat in Peak District being marketed with a lease of just over 72 years unexpired. Alfie informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Dr Leon Phillips was assigned a lease of a one bedroom flat in Peak District in November 1997. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Peak District with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out in 2084. Considering the 59 years remaining we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
Last year we were approach by Mr and Mrs. K Peterson , who owned a purpose-built flat in Peak District in May 1999. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical properties in Peak District with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease expiry date was in 2095. Considering the 70 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.