For anyone whose Matlock home is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Matlock leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the landlord of her studio flat in Matlock, Emily started the lease extension process as the eighty year deadline was swiftly nearing. The legal work completed in March 2005. The landlord’s charges were restricted to less than 450 pounds.
Ms Isabelle Walker acquired a purpose-built apartment in Matlock in November 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Matlock with a long lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended in 2076. Considering the 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.
Dr A Pérez was assigned a lease of a one bedroom flat in Matlock in March 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Matlock with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed in 2096. Given that there were 72 years left we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.