The market value of a leasehold property in Norfolk Broads is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year mark. Current legislation entitles Norfolk Broads qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
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 residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Norfolk Broads 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 Norfolk Broads lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron was the the leasehold proprietor of a high value flat in Norfolk Broads being marketed with a lease of fraction over 72 years left. Cameron on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and secured an acceptable resolution informally and sell the flat.
In 2010 we were approached by Mr and Mrs. W Ricardo who, having took over the lease of a newly refurbished apartment in Norfolk Broads in November 1996. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable premises in Norfolk Broads with a long lease were valued about £285,000. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2098. Given that there were 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Last September we were e-mailed by Mr and Mrs. D Martin , who acquired a one bedroom apartment in Norfolk Broads in March 2009. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar premises in Norfolk Broads with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed on 8 September 2087. Taking into account 61 years left we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus professional charges.