High Peak leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Flat owners in High Peak will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in High Peak with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your High Peak leasehold, as your property will be more valuable and saleable 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.
In recent months Liam, came dangerously near to the eighty-year threshold with the lease on his first floor apartment in High Peak. In buying his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Liam was able to extend his lease just under the wire last June. Liam and the freeholder eventually agreed on sum of £6,000 . If the lease had dipped below eighty years, the sum would have become more costly by a minimum £875.
Last Christmas we were approach by Dr Max Parker , who completed a ground floor flat in High Peak in September 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in High Peak with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 collected per annum. The lease elapsed in 2086. Having 60 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
Last Spring we were e-mailed by Mr Reuben Nguyen , who purchased a studio apartment in High Peak in June 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in High Peak with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed quarterly. The lease elapsed on 26 May 2097. Considering the 71 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.