It’s an underpublicised certainty that a Norbiton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Norbiton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Most flat owners in Norbiton will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|Lloyds TSB Scotland||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Lease extensions in Norbiton can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience procuring Norbiton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Oscar, came precariously close to the eighty-year mark with the lease on his first floor apartment in Norbiton. In buying his property two decades ago, the unexpired term was of minimal significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Oscar arranged for a lease extension at the eleventh hour in September. Oscar and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If the lease had gone lower than eighty years, the price would have escalated by at least £975.
In 2012 we were approached by Dr Stanley Bertrand who, having was assigned a lease of a purpose-built apartment in Norbiton in October 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Norbiton with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease terminated in 2099. Having 76 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
An example of a Lease Extension case for a Norbiton property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.