Top reasons for Norbury lease extension

Main reasons to commence your Norbury lease extension today:

Increase your lease and increase your Norbury property value

Norbury residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to finance a property with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Norbury?

Engaging our service gives you increased control over the value of your Norbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Norbury Lease Extension Example Cases:

Michael, Norbury, South London,

Michael was the the leasehold owner of a studio apartment in Norbury being marketed with a lease of just over sixty years remaining. Michael on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Norbury case:

In 2012 we were approached by Mr and Mrs. N Dupont who, having owned a ground floor apartment in Norbury in August 1998. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Norbury with an extended lease were in the region of £290,000. The average amount of ground rent was £45 collected per annum. The lease elapsed on 11 February 2098. Taking into account 72 years remaining we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.