Unfortunately that a Glossop residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Glossop property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Glossop will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Glossop,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Glossop valuers.
18 months ago Omar, started to get near to the eighty-year mark with the lease on his first floor apartment in Glossop. Having bought his home two decades ago, the unexpired term was of minimal relevance. by good luck, he recognised he needed to take steps soon on a lease extension. Omar extended the lease just under the wire last September. Omar and the landlord in the end agreed on sum of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £900.
Mr Kyle Roberts acquired a recently refurbished apartment in Glossop in October 2010. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar residencies in Glossop with a long lease were worth £168,800. The mid-range ground rent payable was £60 invoiced annually. The lease ended on 17 March 2080. Taking into account 55 years left we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.
Dr Jodie Rivera was assigned a lease of a ground floor flat in Glossop in May 2009. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable properties in Glossop with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2091. Taking into account 66 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.