With a residential leasehold premises in Peak District, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years left. Anyone in Peak District with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years outstanding, under the current statute the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Peak District with in excess of one hundred years unexpired 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Peak District can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience dealing with 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.
Alfie owned a high value flat in Peak District being marketed with a lease of fraction over 59 years unexpired. Alfie on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr S François owned a garden apartment in Peak District in October 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Peak District with a long lease were in the region of £254,200. The average ground rent payable was £60 billed per annum. The lease ran out on 1 September 2077. Given that there were 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of expenses.
Dr T Lambert was assigned a lease of a ground floor apartment in Peak District in June 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar residencies in Peak District with an extended lease were in the region of £215,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2088. Taking into account 62 years left we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.