Why you should start your Norbiton lease extension

Main reasons to start your Norbiton lease extension today:

A Norbiton lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Norbiton. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Norbiton have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Norbiton lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension

Norbiton property with a lease extension is almost the same value as a freehold

Leasehold properties in Norbiton with in excess of 100 years left on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to finance a property with a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Many will simply not lend at all once the residual lease term slips below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years suitable security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Norbiton property.

Get in touch with one of our Norbiton lease extension solicitors or enfranchisement solicitors

Using our service will provide you enhanced control over the value of your Norbiton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Norbiton Lease Extension Case Summaries:

Cameron, Norbiton, South West London

Last year Cameron, came seriously near to the 80-year mark with the lease on his leasehold flat in Norbiton. In buying his home two decades ago, the length of the lease was of no concern. As luck would have it, he realised he needed to take steps soon on Extending the lease. Cameron was able to extend his lease just under the wire last July. Cameron and the freeholder via the management company ultimately agreed on the final figure of £5,000 . If the lease had descended lower than eighty years, the price would have increased by at least £875.

Norbiton case:

In 2011 we were phoned by Mr and Mrs. T Dupont who, having was assigned a lease of a studio flat in Norbiton in May 2001. We are asked if we could approximate the price would be for a ninety year lease extension. Similar premises in Norbiton with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 collected monthly. The lease finished on 19 September 2105. Given that there were 80 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.