Norwich residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Norwich can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 in-depth market knowledge procuring Norwich 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 freeholder of her leasehold flat in Norwich, Alice started the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in April 2011. The landlord’s costs were restricted to below 600 GBP.
In 2013 we were called by Mr W Stewart who, having purchased a one bedroom apartment in Norwich in April 2001. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Norwich with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed annually. The lease finished in 2086. Given that there were 61 years left we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 not including professional charges.
In 2014 we were approached by Mr and Mrs. I Smith who, having bought a one bedroom apartment in Norwich in November 2001. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar residencies in Norwich with an extended lease were in the region of £171,800. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish in 2075. Given that there were 50 years left we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.