The only way is down when it comes to High Peak lease terms. High Peak flats that have a remaining term shorter than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold residencies in High Peak with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
After lengthy discussions with the landlord of her ground floor apartment in High Peak, Grace started the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work completed in June 2011. The landlord’s fees were negotiated to about 550 GBP.
Last July we were e-mailed by Mr and Mrs. E Williams , who was assigned a lease of a purpose-built apartment in High Peak in July 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable properties in High Peak with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 billed monthly. The lease lapsed in 2087. Having 62 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of legals.
In 2013 we were e-mailed by Dr Jessica Bertrand who, having purchased a first floor apartment in High Peak in May 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in High Peak with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed on 10 March 2098. Having 73 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.