As the the remaining lease term of a Glossop domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Glossop will qualify for this right; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Glossop,the lease extension solicitors that we work with will always be prepared 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.
Samuel was the the leasehold owner of a high value apartment in Glossop on the market with a lease of a few days over 72 years unexpired. Samuel on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Autumn we were contacted by Dr Alicia Rose , who completed a first floor flat in Glossop in January 1999. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable flats in Glossop with an extended lease were worth £264,000. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2078. Considering the 53 years left we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus fees.
Mrs Isabella Lee owned a basement flat in Glossop in May 1999. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable homes in Glossop with a long lease were valued about £225,400. The average ground rent payable was £45 billed monthly. The lease elapsed on 20 March 2089. Given that there were 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including expenses.