It’s an underpublicised certainty that a Peak District residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Peak District property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most leasehold owners in Peak District will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Peak District with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| TSB |
The lawyers 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 lawyer we work with provide it.
In 2014 John, started to get near to the 80-year mark with the lease on his ground floor apartment in Peak District. In buying his flat two decades ago, the length of the lease was of no relevance. Fortunately, he realised he needed to take steps soon on a lease extension. John extended the lease just under the wire in April. John and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,125.
In 2009 we were contacted by Dr L Garcia who, having moved into a purpose-built apartment in Peak District in August 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Peak District with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 collected annually. The lease concluded in 2084. Having 58 years unexpired we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus expenses.
Dr U Roux bought a one bedroom apartment in Peak District in July 1996. We are asked if we could estimate the price could be for a 90 year lease extension. Similar premises in Peak District with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out on 25 September 2095. Given that there were 69 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.