Main reasons to start your Glossop lease extension

Why you should start your Glossop lease extension today:

Increase your lease and increase your Glossop property value

Glossop leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Glossop residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Glossop you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Glossop with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not loan monies on a short lease

Lenders are making their criteria more stringent and a meaningful number now expect flats to have a minimum of 60 if not 70 years left once the mortgage has expired. As a number of flats in Glossop were created in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Glossop lease extensions?

Irrespective of whether you are a tenant or a freeholder in Glossop,the lease extension lawyers 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 Glossop valuers.

Glossop Lease Extension Example Cases:

John, Glossop, Derbyshire,

John owned a studio flat in Glossop on the market with a lease of just over sixty years remaining. John on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Glossop case:

Last year we were contacted by Mr and Mrs. M Flores , who owned a first floor apartment in Glossop in August 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Glossop with an extended lease were valued around £183,600. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2083. Taking into account 57 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.

Glossop case:

Last Winter we were contacted by Mr and Mrs. D Rose , who was assigned a lease of a basement flat in Glossop in May 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Glossop with a long lease were worth £245,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2094. Given that there were 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.