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Top reasons for Norbiton lease extension

Why you should commence your Norbiton lease extension today:

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

The re-sale value of a leasehold property in Norbiton is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year threshold. Leasehold Reform legislation enables Norbiton qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold residencies in Norbiton with more than one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not finance a property with a short lease

Almost all banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is likely that someone wanting to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the value of the property could be adversely impacted. Since 2008 most banks and building societies have increased the required minimum lease length that they are willing to lend on

Lender Requirement
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.
Coventry Building Society 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.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

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

Lease extensions in Norbiton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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.

Norbiton Lease Extension Example Cases:

Rebecca, Norbiton, South West London,

Trailing lengthy correspondence with the freeholder of her garden flat in Norbiton, Rebecca commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was concluded in March 2006. The freeholder’s costs were restricted to approximately 450 pounds.

Norbiton case:

Last November we were called by Mr and Mrs. A Bonnet , who bought a first floor apartment in Norbiton in January 1998. The question was if we could approximate the premium would be to prolong the lease by ninety years. Identical properties in Norbiton with an extended lease were in the region of £205,000. The average amount of ground rent was £50 billed per annum. The lease ran out on 14 June 2103. Given that there were 79 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.

Decision in Kingston upon Thames

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.