Glossop leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Glossop will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Glossop can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 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.
John owned a 2 bedroom flat in Glossop on the market with a lease of just over 59 years unexpired. John on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were approach by Mr J Miller , who acquired a one bedroom flat in Glossop in April 2000. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical properties in Glossop with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 invoiced annually. The lease finished on 4 March 2093. Considering the 68 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Mr and Mrs. G Peterson purchased a garden apartment in Glossop in July 1996. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar flats in Glossop with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease termination date was on 23 September 2104. Taking into account 79 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.