When it comes to long leasehold property in Norbiton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Norbiton with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has fewer than 80 years left, under the current statute the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over 100 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 premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Norbiton,the lease extension solicitors 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 Norbiton valuers.
16 months ago James, came critically close to the 80-year threshold with the lease on his leasehold flat in Norbiton. Having purchased his property two decades ago, the length of the lease was of minimal interest. Thankfully, he recognised he needed to take action soon on Extending the lease. James extended the lease just under the wire last March. James and the landlord who owned the flat above in the end agreed on sum of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £1,125.
In 2009 we were e-mailed by Mr and Mrs. D González who, having moved into a basement flat in Norbiton in October 2008. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Norbiton with an extended lease were in the region of £267,600. The average ground rent payable was £65 invoiced annually. The lease elapsed on 26 March 2093. Having 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.
An example of a Lease Extension decision for a Norbiton premises 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 affected 1 flat.