Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Peak District. Clearly, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Peak District have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give due attention before delaying your Peak District lease extension. Holding off that expense now only increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Peak District can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring 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.
Trailing protracted negotiations with the landlord of her studio flat in Peak District, Olivia initiated the lease extension process just as her lease was coming close to the all-important 80-year mark. The legal work was concluded in April 2006. The freeholder’s fees were restricted to a tad over 600 GBP.
Mr and Mrs. W Lee moved into a purpose-built flat in Peak District in October 1998. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparable homes in Peak District with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 billed annually. The lease lapsed in 2085. Having 60 years remaining we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.
Last year we were phoned by Mr and Mrs. K Scott , who acquired a studio flat in Peak District in January 2009. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable properties in Peak District with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced per annum. The lease finished on 25 September 2096. Considering the 71 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.