For anyone whose Norbiton home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold properties in Norbiton with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Norbiton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Norbiton valuers.
In recent months Nathan, started to get near to the 80-year mark with the lease on his purpose- built flat in Norbiton. Having bought his flat two decades ago, the lease term was of little bearing. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Nathan arranged for a lease extension at the eleventh hour in March. Nathan and the freeholder eventually agreed on the final figure of £5,500 . If the lease had slipped to less than 80 years, the sum would have gone up by a minimum £1,000.
In 2012 we were contacted by Mr and Mrs. C Clark who, having purchased a recently refurbished apartment in Norbiton in November 2007. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Norbiton with a long lease were worth £189,000. The average ground rent payable was £55 invoiced per annum. The lease elapsed on 24 August 2079. Taking into account 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.
An example of a Lease Extension decision 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 affected 1 flat.