With a residential leasehold property in Peak District, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Peak District with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Peak District leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold owner of a studio apartment in Peak District being sold with a lease of fraction over sixty years outstanding. Jacob informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr J Morel completed a one bedroom flat in Peak District in February 2001. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparative residencies in Peak District with an extended lease were worth £232,800. The average ground rent payable was £45 billed quarterly. The lease finished on 5 May 2091. Having 65 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
In 2014 we were called by Dr Amelia Lee who, having moved into a recently refurbished flat in Peak District in January 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable properties in Peak District with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2102. Given that there were 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.