Glossop leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Glossop tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Glossop you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 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 ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Glossop can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience dealing with Glossop 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 Thomas, started to get near to the 80-year threshold with the lease on his purpose- built flat in Glossop. Having bought his home two decades ago, the unexpired term was of little bearing. Fortunately, he realised he needed to take action soon on a lease extension. Thomas arranged for a lease extension at the eleventh hour last April. Thomas and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had slipped below 80 years, the price would have increased by at least £1,125.
Last year we were called by Mrs T Carter , who purchased a studio apartment in Glossop in September 2011. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative homes in Glossop with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 billed yearly. The lease lapsed on 13 April 2076. Considering the 50 years remaining we approximated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including expenses.
Last Autumn we were called by Ms H Cooper , who owned a one bedroom apartment in Glossop in September 1997. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Glossop with 100 year plus lease were worth £203,200. The average ground rent payable was £65 collected per annum. The lease termination date was in 2087. Taking into account 61 years remaining we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of costs.