Main reasons to commence your Peak District lease extension

Why you should start your Peak District lease extension today:

A Peak District leasehold property depreciates with the years remaining on the lease.

Peak District leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Peak District will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders will not issue a mortgage with a short lease

Many mortgage lenders will be unwilling to grant a mortgage on a lease with under seventy years remaining - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Peak District property becoming difficult to sell or to obtain finance on.

Why use us for your lease extension in Peak District?

The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.

Peak District Lease Extension Case Studies:

Mollie, Peak District, Derbyshire,

Following lengthy correspondence with the freeholder of her basement apartment in Peak District, Mollie commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work completed in March 2008. The freeholder’s charges were kept to an absolute minimum.

Peak District case:

In 2009 we were approached by Mr and Mrs. W Thompson who, having owned a ground floor apartment in Peak District in March 1997. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical properties in Peak District with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out in 2096. Considering the 70 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.

Peak District case:

Last month we were e-mailed by Mr V Martinez , who took over the lease of a purpose-built flat in Peak District in July 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar properties in Peak District with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 collected annually. The lease came to a finish in 2076. Having 50 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus legals.