It’s an underpublicised certainty that a Glossop residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Glossop property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Glossop will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Glossop with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless 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.
Reuben was the the leasehold owner of a high value flat in Glossop on the market with a lease of fraction over 61 years left. Reuben informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Dr Ellie Bertrand was assigned a lease of a ground floor apartment in Glossop in April 2005. We are asked if we could approximate the price could be for a ninety year lease extension. Similar premises in Glossop with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease expired in 2096. Considering the 70 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2009 we were e-mailed by Dr E Taylor who, having was assigned a lease of a one bedroom apartment in Glossop in July 2006. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar premises in Glossop with an extended lease were worth £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease ran out on 11 May 2076. Given that there were 50 years left we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.