When it comes to long leasehold premises in Norfolk Broads, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years left. Anyone in Norfolk Broads with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has less than eighty years outstanding, under the relevant statute the freeholder can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
The conveyancers that we work with undertake Norfolk Broads lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Joseph, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in Norfolk Broads. Having bought his home two decades ago, the lease term was of little concern. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Joseph extended the lease just under the wire in April. Joseph and the freeholder ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,000.
Mrs Ellie Torres bought a one bedroom apartment in Norfolk Broads in March 1999. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Norfolk Broads with a long lease were valued around £184,000. The mid-range amount of ground rent was £55 collected annually. The lease concluded in 2079. Considering the 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
In 2014 we were approached by Mr and Mrs. C López who, having purchased a purpose-built apartment in Norfolk Broads in April 2007. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Norfolk Broads with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2099. Given that there were 73 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.