The value of Norfolk Broads leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Norfolk Broads,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Norfolk Broads valuers.
Last Autumn Zachary, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Norfolk Broads. Having bought his home 19 years previously, the length of the lease was of little importance. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. Zachary was able to extend his lease just under the wire last July. Zachary and the landlord subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £975.
Last month we were approach by Mr and Mrs. R Walker , who took over the lease of a basement apartment in Norfolk Broads in August 2010. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Norfolk Broads with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 collected per annum. The lease expired on 16 February 2091. Given that there were 65 years left we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Mrs Georgia Simon bought a purpose-built flat in Norfolk Broads in November 2005. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Norfolk Broads with a long lease were valued about £191,400. The average amount of ground rent was £55 collected per annum. The lease ended on 10 March 2080. Considering the 54 years left we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 not including costs.