The market value of a leasehold property in Glossop depends on how many years the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded ahead of the eighty year threshold. Current legislation enables Glossop qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Glossop with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with handle Glossop lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Autumn Noah, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Glossop. Having bought his flat two decades ago, the lease term was of little significance. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Noah extended the lease at the eleventh hour last May. Noah and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he had missed the deadline, the amount would have become more costly by a minimum £900.
Mr and Mrs. G Alexander purchased a first floor flat in Glossop in September 2009. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Glossop with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished on 8 April 2088. Taking into account 63 years outstanding we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of costs.
In 2012 we were contacted by Dr J Cox who, having purchased a ground floor flat in Glossop in March 2002. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar premises in Glossop with a long lease were worth £265,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2099. Considering the 74 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.