The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Peak District may extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Peak District lease extension. Postponing the costs now simply increases the price you will eventually have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Peak District can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Peak District lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Ollie, started to get close to the 80-year mark with the lease on his two bedroom apartment in Peak District. In buying his home two decades ago, the lease term was of little significance. Fortunately, he realised he needed to take action soon on Extending the lease. Ollie was able to extend his lease at the eleventh hour in May. Ollie and the landlord subsequently agreed on a premium of £5,500 . If he not met the deadline, the figure would have escalated by at least £1,050.
Mr R Gómez acquired a garden flat in Peak District in January 1995. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable flats in Peak District with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected annually. The lease elapsed on 10 October 2079. Having 54 years left we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.
Last Autumn we were contacted by Dr Muhammad Turner , who acquired a basement apartment in Peak District in November 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar flats in Peak District with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2089. Having 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including fees.