Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Norbury. Clearly, the period of lease left shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Norbury have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before putting off your Norbury lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Norbury can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Norbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her one bedroom flat in Norbury, Bethany started the lease extension process as the 80 year mark was swiftly coming. The legal work was finalised in March 2006. The freeholder’s fees were kept to an absolute minimum.
Dr G Brown acquired a one bedroom flat in Norbury in January 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Norbury with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 billed per annum. The lease ended in 2087. Having 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
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 affected 1 flat. The unexpired term as at the valuation date was 23.25 years.