Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Peak District. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Peak District have the right to extend the lease for an additional 90 years in accordance with legislation. Please give careful attention before putting off your Peak District lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Peak District with over 100 years remaining 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Peak District,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peak District valuers.
Rory owned a conversion apartment in Peak District on the market with a lease of a little over fifty eight years left. Rory on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last Autumn we were contacted by Dr Kirsty Díaz , who owned a first floor flat in Peak District in January 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Peak District with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 collected monthly. The lease ended on 13 April 2090. Taking into account 66 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2014 we were e-mailed by Dr L Michel who, having purchased a one bedroom flat in Peak District in September 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Peak District with a long lease were worth £275,000. The average ground rent payable was £55 billed annually. The lease ended in 2101. Given that there were 77 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.