Unfortunately that a Norfolk Broads residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Norfolk Broads property market.Once your lease nears 85ish years, you need to start thinking about 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 below 80 years - otherwise a higher amount will be due. Most leasehold owners in Norfolk Broads will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Norfolk Broads with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Norfolk Broads can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
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 dealing with 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.
Trailing unsuccessful discussions with the landlord of her basement flat in Norfolk Broads, Georgia started the lease extension process as the 80 year threshold was quickly advancing. The lease extension completed in April 2007. The landlord’s costs were restricted to under 650 GBP.
In 2014 we were called by Dr Archie Bertrand who, having acquired a studio flat in Norfolk Broads in May 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Norfolk Broads with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease ran out on 21 September 2076. Given that there were 51 years unexpired we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.
In 2013 we were e-mailed by Dr Jonathan Kelly who, having completed a one bedroom apartment in Norfolk Broads in September 2012. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in Norfolk Broads with a long lease were valued around £285,000. The average amount of ground rent was £45 billed yearly. The lease terminated in 2096. Having 71 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.