The market value of a leasehold property in Norris Green depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year cut off point. Current legislation entitles Norris Green qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Lease extensions in Norris Green can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Norris Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Ben, started to get near to the eighty-year mark with the lease on his ground floor apartment in Norris Green. In buying his flat 19 years previously, the unexpired term was of minimal relevance. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Ben was able to extend his lease just in the nick of time last March. Ben and the freeholder via the management company subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,050.
Last month we were called by Dr E Thompson , who acquired a garden apartment in Norris Green in November 2000. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical residencies in Norris Green with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 8 September 2077. Having 52 years remaining we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.
In 2014 we were contacted by Dr W Green who, having owned a garden apartment in Norris Green in September 2011. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar properties in Norris Green with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease ran out on 14 June 2097. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.