When it comes to long leasehold premises in Glossop, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Anyone in Glossop with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Glossop with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Glossop can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Glossop lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan was the the leasehold proprietor of a conversion apartment in Glossop on the market with a lease of a few days over 72 years left. Jonathan informally contacted his freeholder being a well known Manchester-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 at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last February we were phoned by Mr Freddie Williams , who bought a newly refurbished apartment in Glossop in April 2011. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Glossop with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out in 2104. Considering the 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Last Winter we were e-mailed by Mr and Mrs. T Bell , who moved into a purpose-built flat in Glossop in March 1998. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Glossop with an extended lease were valued around £186,000. The average amount of ground rent was £65 collected quarterly. The lease elapsed in 2084. Given that there were 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of expenses.