The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Norbiton can extend the lease for an additional 90 years under Leasehold Reform legislation. Please think carefully before delaying your Norbiton lease extension. Postponing that expense now simply increases the premium you will eventually have to pay to extend the lease.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of lengthy discussions with the freeholder of her leasehold flat in Norbiton, Rachael initiated the lease extension process as the 80 year mark was rapidly approaching. The legal work was finalised in May 2012. The freeholder’s costs were negotiated to below four hundred GBP.
In 2011 we were e-mailed by Mr and Mrs. M Moreau who, having was assigned a lease of a purpose-built flat in Norbiton in March 2012. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Norbiton with an extended lease were valued around £248,000. The mid-range amount of ground rent was £65 collected per annum. The lease finished on 6 June 2088. Considering the 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.
An example of a Lease Extension decision for a Norbiton property 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.