With a residential leasehold premises in Norris Green, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Norris Green with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years outstanding, under the current statute the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Norris Green leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Nathaniel, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Norris Green. In buying his home two decades ago, the length of the lease was of minimal bearing. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Nathaniel was able to extend his lease just ahead of time in August. Nathaniel and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had dropped to less than 80 years, the price would have become more exhorbitant by a minimum £1,025.
In 2012 we were phoned by Mr Y Brown who, having purchased a first floor flat in Norris Green in April 2006. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Norris Green with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2096. Taking into account 71 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
In 2014 we were e-mailed by Mrs N Cook who, having was assigned a lease of a one bedroom apartment in Norris Green in March 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical residencies in Norris Green with a long lease were worth £225,800. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish on 25 April 2085. Considering the 60 years remaining we estimated the premium to the freeholder for the lease extension to be between £25,700 and £29,600 exclusive of professional charges.