Why you should start your Norbiton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Norbiton property value

Norbiton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Norbiton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Norbiton you really ought to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Norbiton flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold residencies in Norbiton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders will not loan monies with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a freeholder in Norbiton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Norbiton valuers.

Norbiton Lease Extension Example Cases:

Ben, Norbiton, South West London

Last October Ben, came very close to the eighty-year threshold with the lease on his basement apartment in Norbiton. In buying his flat 18 years previously, the lease term was of minimal relevance. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Ben arranged for a lease extension at the eleventh hour last January. Ben and the landlord in the end agreed on an amount of £5,500 . If he not met the deadline, the amount would have escalated by at least £900.

Norbiton case:

Mrs Bethany Bailey bought a one bedroom apartment in Norbiton in March 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Norbiton with a long lease were valued about £248,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease expired on 12 September 2089. Given that there were 63 years left we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.