The nearer a domestic lease in Norris Green gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Norris Green will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Norris Green with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Norris Green,the lease extension solicitors 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 Norris Green valuers.
After protracted discussions with the landlord of her garden apartment in Norris Green, Sophia started the lease extension process as the 80 year mark was rapidly coming. The lease extension was finalised in June 2005. The landlord’s fees were kept to an absolute minimum.
In 2014 we were called by Dr Y Mitchell who, having bought a basement flat in Norris Green in April 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Norris Green with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 billed yearly. The lease finished on 15 October 2089. Taking into account 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus professional charges.
Last month we were phoned by Mr and Mrs. D Mitchell , who owned a newly refurbished apartment in Norris Green in March 2009. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Norris Green with 100 year plus lease were worth £184,000. The average amount of ground rent was £55 billed per annum. The lease ended on 3 October 2078. Having 53 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.