With a domestic leasehold property in Norbury, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Norbury with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has below 80 years outstanding, under the current statute the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Norbury with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide you increased control over the value of your Norbury leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her garden flat in Norbury, Kayleigh commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction was concluded in January 2014. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were approached by Mr Theo Hall who, having was assigned a lease of a garden apartment in Norbury in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar premises in Norbury with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease concluded in 2087. Given that there were 61 years left we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus expenses.
An example of a Lease Extension case for a Norbury property is Flat 12, Newlands Court Streatham Common North in May 2012. the decision of the Tribunal was that the premium payable by the Applicants to the Respondent for the new lease of the Premises be £70,140. This case related to 1 flat. The number of years remaining on the existing lease(s) was 23.25 years.