Peak District leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Peak District will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a conversion flat in Peak District on the market with a lease of just over 61 years outstanding. Oliver informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mrs M White purchased a recently refurbished apartment in Peak District in May 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Peak District with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 invoiced annually. The lease finished in 2099. Given that there were 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2010 we were phoned by Mr B Clarke who, having purchased a first floor flat in Peak District in May 2011. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar premises in Peak District with a long lease were worth £264,000. The mid-range ground rent payable was £60 billed per annum. The lease terminated in 2079. Having 53 years left we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.