The value of Glossop leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than eighty years
Leasehold residencies in Glossop with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 obtain professional help from a lawyer and surveyor 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.
Harvey owned a 2 bedroom flat in Glossop on the market with a lease of a few days over 61 years remaining. Harvey informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2010 we were phoned by Mrs U Nelson who, having acquired a ground floor apartment in Glossop in April 1996. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Glossop with 100 year plus lease were valued about £235,200. The average ground rent payable was £45 invoiced annually. The lease lapsed in 2092. Given that there were 66 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. U Alexander purchased a basement flat in Glossop in May 2000. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Glossop with a long lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish in 2103. Taking into account 77 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.