Peak District leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Peak District will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Peak District leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her leasehold flat in Peak District, Amy initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension completed in August 2005. The landlord’s fees were restricted to slightly above 650 pounds.
Last month we were contacted by Mr Arthur Cook , who owned a one bedroom flat in Peak District in September 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Peak District with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected annually. The lease ran out on 8 October 2101. Taking into account 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Last March we were e-mailed by Mrs Leah Miller , who completed a garden flat in Peak District in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical homes in Peak District with 100 year plus lease were in the region of £173,800. The average ground rent payable was £65 collected monthly. The lease elapsed in 2081. Considering the 55 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.