Unfortunately that a Norwich residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Norwich property market.Where your lease has approximately 90 years left, 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 slips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Norwich will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Norwich with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Norwich,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Norwich valuers.
During the course of the last few months Finley, came seriously close to the 80-year threshold with the lease on his purpose- built apartment in Norwich. Having purchased his flat 18 years previously, the lease term was of minimal bearing. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Finley extended the lease just in the nick of time last January. Finley and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had slipped below 80 years, the amount would have become more exhorbitant by a minimum £925.
Ms K Ward purchased a first floor apartment in Norwich in May 2012. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Norwich with an extended lease were in the region of £275,000. The average amount of ground rent was £65 collected quarterly. The lease ran out on 19 March 2094. Given that there were 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.
Last Christmas we were called by Dr W Peterson , who purchased a purpose-built flat in Norwich in January 2008. We are asked if we could approximate the price would be for a 90 year lease extension. Similar premises in Norwich with an extended lease were in the region of £213,600. The average ground rent payable was £60 collected every twelve months. The lease came to a finish on 10 February 2083. Taking into account 57 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.