There is no doubt about it a leasehold flat or house in Norbiton is a wasting asset as a result of the shortening lease. Where the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Norbiton will qualify for this right; nevertheless a conveyancer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
Lender | Requirement |
---|---|
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. |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
The conveyancing solicitors that we work with undertake Norbiton 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 lawyer we work with provide it.
Tommy was the the leasehold proprietor of a studio flat in Norbiton being sold with a lease of fraction over 61 years left. Tommy on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were contacted by Mrs M Robinson who, having took over the lease of a one bedroom apartment in Norbiton in January 2009. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical homes in Norbiton with 100 year plus lease were valued about £243,000. The mid-range amount of ground rent was £65 billed quarterly. The lease end date was on 18 February 2087. Given that there were 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.
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.