As the length of the unexpired term of a Norris Green domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Norris Green will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Norris Green with over one hundred years remaining on the lease are sometimes regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Norris Green can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring 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.
Kyle owned a 2 bedroom apartment in Norris Green on the market with a lease of a few days over 59 years left. Kyle on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2013 we were called by Dr Isaac Lee who, having completed a purpose-built flat in Norris Green in June 2000. The question was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparable residencies in Norris Green with a long lease were worth £300,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish in 2101. Taking into account 76 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last Christmas we were e-mailed by Mr N Ward , who purchased a one bedroom apartment in Norris Green in February 2007. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Similar residencies in Norris Green with 100 year plus lease were valued around £252,800. The mid-range ground rent payable was £65 invoiced annually. The lease concluded on 9 June 2090. Considering the 65 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of legals.