Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Norbiton. Clearly, the length of lease remaining shortens over time. This is often overlooked and only becomes a problem when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Norbiton have the right to extend the lease for a further 90 years under legislation. Do give due consideration before putting off your Norbiton lease extension. Putting off that expense now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Half a year ago Blake, came critically near to the eighty-year threshold with the lease on his studio flat in Norbiton. Having purchased his home twenty years previously, the lease term was of minimal significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Blake extended the lease just under the wire last June. Blake and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had gone lower than 80 years, the premium would have become more exhorbitant by at least £1,075.
Last year we were called by Mr Callum Rogers , who owned a purpose-built flat in Norbiton in April 1997. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Norbiton with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired in 2103. Given that there were 78 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
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 was in relation to 1 flat.