With a domestic leasehold property in Norbiton, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Residents in Norbiton with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has below 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Norbiton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 Norbiton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Thomas, started to get close to the 80-year mark with the lease on his basement apartment in Norbiton. In buying his property two decades ago, the unexpired term was of little importance. by good luck, he recognised he needed to take steps soon on Extending the lease. Thomas was able to extend his lease just under the wire in January. Thomas and the landlord ultimately settled on the final figure of £6,000 . If the lease had dropped to less than eighty years, the premium would have gone up by a minimum £850.
In 2012 we were e-mailed by Ms Emily Alexander who, having was assigned a lease of a garden apartment in Norbiton in September 2008. We are asked if we could estimate the price would be for a ninety year lease extension. Similar homes in Norbiton with an extended lease were worth £196,400. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2080. Considering the 54 years left we estimated the compensation to the landlord for the lease extension to be between £35,200 and £40,600 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Norbiton residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.