Norbury leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Norbury enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Norbury you should see if your lease has between seventy and 90 years left. There are good reasons why a Norbury flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over one hundred 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 residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Half a year ago Adam, came seriously close to the 80-year mark with the lease on his two bedroom flat in Norbury. Having purchased his home 19 years previously, the lease term was of little bearing. Thankfully, he recognised he needed to take steps soon on Extending the lease. Adam extended the lease just under the wire in July. Adam and the freeholder subsequently agreed on sum of £5,000 . If the lease had slid lower than eighty years, the sum would have increased by at least £1,150.
In 2014 we were e-mailed by Mr Hugo Cooper who, having bought a garden apartment in Norbury in November 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Norbury with a long lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease elapsed in 2097. Having 73 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Norbury property 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 related to 1 flat. The number of years remaining on the existing lease(s) was 23.25 years.