Top reasons for Norbiton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Norbiton property value

The re-sale value of a leasehold property in Norbiton depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed ahead of the eighty year cut off point. Statute enables Norbiton qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Norbiton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not finance a property on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Norbiton lease extensions?

The conveyancing solicitors 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 lawyer we work with provide it.

Norbiton Lease Extension Case Summaries:

Samantha, Norbiton, South West London,

In the wake of 6 months of unsuccessful negotiations with the freeholder of her ground floor apartment in Norbiton, Samantha commenced the lease extension process as the eighty year deadline was swiftly nearing. The transaction completed in January 2011. The freeholder’s charges were kept to an absolute minimum.

Norbiton case:

Mr and Mrs. R Lefèvre owned a ground floor flat in Norbiton in March 2009. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Norbiton with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 collected annually. The lease expired on 16 June 2092. Having 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.