When it comes to residential leasehold premises in Norbury, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Residents in Norbury with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years left, under the relevant Act the landlord is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Norbury 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 protracted negotiations with the freeholder of her basement flat in Norbury, Jessica started the lease extension process as the 80 year threshold was quickly approaching. The legal work was concluded in September 2015. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. H Kelly , who moved into a newly refurbished flat in Norbury in July 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Norbury with a long lease were valued about £285,000. The average amount of ground rent was £45 collected annually. The lease expiry date was on 26 January 2097. Taking into account 71 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Norbury residence is Flat 12, Newlands Court Streatham Common North in May 2012. the decision of the Tribunal was that the premium payable by the Applicants to the Respondent for the new lease of the Premises be £70,140. This case affected 1 flat. The unexpired residue of the current lease was 23.25 years.