Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Norfolk Broads. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Norfolk Broads have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due attention before delaying your Norfolk Broads lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Norfolk Broads with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your Norfolk Broads leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold owner of a high value flat in Norfolk Broads on the market with a lease of just over 72 years unexpired. Oliver on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant 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 increase every 25 years thereafter. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last year we were e-mailed by Dr Daisy Bernard , who moved into a one bedroom flat in Norfolk Broads in March 2011. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Norfolk Broads with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2103. Given that there were 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr R Parker was assigned a lease of a purpose-built apartment in Norfolk Broads in May 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Norfolk Broads with 100 year plus lease were valued around £260,200. The average amount of ground rent was £65 invoiced monthly. The lease expired on 7 August 2092. Considering the 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.