It’s an underpublicised certainty that a High Peak residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the High Peak property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% 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 lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in High Peak with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in High Peak,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with High Peak valuers.
Subsequent to lengthy negotiations with the freeholder of her garden apartment in High Peak, Samantha started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The lease extension completed in July 2012. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. S Carter , who took over the lease of a basement flat in High Peak in February 2009. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable premises in High Peak with a long lease were valued around £242,600. The mid-range ground rent payable was £45 collected monthly. The lease concluded on 12 April 2093. Given that there were 67 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.
In 2014 we were contacted by Dr C Martinez who, having completed a ground floor flat in High Peak in January 2012. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in High Peak with an extended lease were valued around £280,000. The average ground rent payable was £55 invoiced annually. The lease concluded on 3 November 2104. Considering the 78 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.