Glossop leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Glossop will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Glossop with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
In the wake of 9 months of unsuccessful discussions with the landlord of her basement apartment in Glossop, Poppy initiated the lease extension process as the eighty year deadline was quickly coming. The legal work was finalised in November 2007. The landlord’s costs were negotiated to under 700 GBP.
Mr Eliot Taylor owned a ground floor apartment in Glossop in July 1997. The question was if we could approximate the price would be to extend the lease by a further 90 years. Similar flats in Glossop with an extended lease were valued around £256,600. The average ground rent payable was £60 invoiced per annum. The lease lapsed in 2077. Considering the 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including expenses.
Last Spring we were approach by Mr and Mrs. G Gómez , who took over the lease of a newly refurbished flat in Glossop in April 2010. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative residencies in Glossop with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected yearly. The lease terminated in 2088. Given that there were 63 years outstanding we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus professional charges.