With a long leasehold property in Peak District, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years left. Anyone in Peak District with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Peak District,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Peak District valuers.
Off the back of lengthy correspondence with the freeholder of her studio flat in Peak District, Amelia commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work was concluded in June 2005. The freeholder’s charges were negotiated to a tad over 500 GBP.
Mrs Rebecca Ricardo was assigned a lease of a recently refurbished apartment in Peak District in May 1995. The question was if we could estimate the price would be for a ninety year lease extension. Similar properties in Peak District with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2077. Considering the 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 not including professional charges.
Last Autumn we were called by Mr and Mrs. Y Lefebvre , who moved into a garden apartment in Peak District in July 1995. 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. Similar flats in Peak District with an extended lease were valued about £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended in 2088. Given that there were 63 years outstanding we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including legals.