The only way is down when it comes to Peak District lease terms. Peak District leaseholds that have a residual term less than than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.
Leasehold residencies in Peak District with more than 100 years unexpired 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you better control over the value of your Peak District leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Harry, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Peak District. Having purchased his flat 18 years ago, the length of the lease was of no concern. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Harry was able to extend his lease just under the wire last January. Harry and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £925.
In 2014 we were phoned by Dr V Bennett who, having moved into a purpose-built flat in Peak District in November 2008. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Similar homes in Peak District with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 billed every twelve months. The lease ended in 2095. Considering the 69 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr F Girard owned a purpose-built apartment in Peak District in February 2006. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar properties in Peak District with an extended lease were in the region of £290,000. The average ground rent payable was £60 invoiced every twelve months. The lease termination date was in 2106. Taking into account 80 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.