Peak District leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty 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 your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Peak District will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Peak District lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Finley owned a studio flat in Peak District being marketed with a lease of a few days over fifty eight years left. Finley on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Finley to exercise his statutory right. Finley obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Last month we were phoned by Mr S Ali , who moved into a newly refurbished apartment in Peak District in March 1998. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Peak District with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated on 18 July 2092. Considering the 66 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2013 we were phoned by Mr Aaron Fournier who, having owned a basement apartment in Peak District in July 2007. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Peak District with a long lease were valued about £280,000. The average amount of ground rent was £55 invoiced annually. The lease end date was in 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.