It’s an underpublicised certainty that a Norfolk Broads residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Norfolk Broads property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Norfolk Broads will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Norfolk Broads,the lease extension experts 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 Norfolk Broads valuers.
Logan owned a studio flat in Norfolk Broads being sold with a lease of just over fifty eight years outstanding. Logan informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Logan to exercise his statutory right. Logan procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2009 we were e-mailed by Ms Katherine Scott who, having owned a garden flat in Norfolk Broads in May 2007. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Norfolk Broads with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease end date was in 2104. Taking into account 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Ms Jessica Leroy purchased a basement apartment in Norfolk Broads in May 1995. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical homes in Norfolk Broads with a long lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2093. Given that there were 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.