Peak District leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Peak District will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Peak District with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Peak District can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 in-depth market knowledge procuring Peak District lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Elijah, started to get near to the 80-year mark with the lease on his ground floor flat in Peak District. Having purchased his home two decades ago, the unexpired term was of no importance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Elijah extended the lease just under the wire in May. Elijah and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had dipped lower than eighty years, the sum would have gone up by at least £1,050.
Last year we were called by Mr and Mrs. S Harris , who took over the lease of a newly refurbished flat in Peak District in June 2007. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical flats in Peak District with an extended lease were in the region of £186,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended in 2083. Taking into account 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including fees.
Mrs Jasmine Gunderson moved into a one bedroom apartment in Peak District in May 2011. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparable properties in Peak District with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected annually. The lease came to a finish on 9 April 2093. Considering the 68 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.