The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Glossop have the legal entitlement to extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Glossop lease extension. Postponing the costs today simply increases the price you will eventually have to pay to extend the lease.
Leasehold residencies in Glossop with in excess of one hundred years unexpired on the lease are often 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
The conveyancers 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 protracted discussions with the landlord of her garden flat in Glossop, Victoria commenced the lease extension process as the 80 year deadline was swiftly coming. The legal work was concluded in February 2008. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. D Brooks who, having bought a basement flat in Glossop in February 2010. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Glossop with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 collected annually. The lease elapsed on 7 July 2102. Taking into account 77 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Last Autumn we were phoned by Dr G Martin , who completed a garden flat in Glossop in February 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Glossop with 100 year plus lease were valued around £183,600. The average ground rent payable was £65 invoiced annually. The lease ended on 27 May 2082. Having 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.