Peak District leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Peak District will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Peak District with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| Chelsea 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Peak District,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 in-depth market knowledge and the close ties they enjoy with Peak District valuers.
Dexter was the the leasehold proprietor of a 2 bedroom flat in Peak District being sold with a lease of just over 59 years unexpired. Dexter informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were phoned by Dr Oliver Bertrand , who bought a newly refurbished apartment in Peak District in August 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Peak District with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 3 August 2102. Given that there were 77 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Mr and Mrs. G Simon took over the lease of a recently refurbished flat in Peak District in October 1995. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative properties in Peak District with 100 year plus lease were valued about £181,200. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish on 19 October 2081. Considering the 56 years remaining we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of fees.