The only way is down when it comes to High Peak lease terms. High Peak flats that have a residual term less than than 80 years will drop in value even faster, and the cost of extending your lease will rise.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake High Peak lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful discussions with the freeholder of her first floor apartment in High Peak, Isobel initiated the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was concluded in November 2006. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mrs N Petit who, having purchased a basement flat in High Peak in August 1995. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in High Peak with a long lease were valued about £270,000. The average amount of ground rent was £55 collected monthly. The lease expired on 27 June 2099. Considering the 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2014 we were approached by Dr J Bell who, having was assigned a lease of a studio apartment in High Peak in August 2001. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in High Peak with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected quarterly. The lease expired in 2079. Considering the 54 years outstanding we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including expenses.