It’s an underpublicised certainty that a High Peak residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the High Peak property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in High Peak will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in High Peak with more than 100 years outstanding on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Santander | |
| Skipton Building Society | |
| TSB |
Lease extensions in High Peak can be a difficult process. We recommend you get professional help from a lawyer 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 a wealth of experience dealing with High Peak lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Oliver, came dangerously close to the eighty-year mark with the lease on his two bedroom apartment in High Peak. In buying his property two decades ago, the length of the lease was of minimal relevance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Oliver arranged for a lease extension just in the nick of time in April. Oliver and the freeholder eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have gone up by at least £975.
Last Autumn we were approach by Mrs K Brown , who completed a garden apartment in High Peak in March 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in High Peak with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 collected yearly. The lease lapsed on 17 June 2105. Considering the 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
In 2010 we were contacted by Mrs Jennifer Green who, having owned a basement flat in High Peak in September 2010. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative residencies in High Peak with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2085. Given that there were 59 years outstanding we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.