It’s an underpublicised truth 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 early years due to the depreciation being disguised by increases in the Glossop property market.Where your lease has approximately ninety years left, 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 dips below 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 should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. 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 throughout the process.
Leasehold properties in Glossop with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| National Westminster Bank | |
| TSB | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Glossop,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Glossop valuers.
Jackson was the the leasehold proprietor of a conversion apartment in Glossop being sold with a lease of a few days over sixty years unexpired. Jackson on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Summer we were called by Mr K Bennett , who took over the lease of a first floor apartment in Glossop in November 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Glossop with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced per annum. The lease end date was in 2079. Taking into account 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including professional charges.
Last Christmas we were called by Mr Alfie Evans , who completed a newly refurbished apartment in Glossop in August 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Glossop with an extended lease were valued about £220,400. The average ground rent payable was £45 billed per annum. The lease concluded in 2090. Given that there were 64 years remaining we approximated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus legals.