Why you should start your Norbury lease extension

Why you should commence your Norbury lease extension today:

A Norbury lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Norbury, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Residents in Norbury with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has fewer than 80 years remaining, under the current statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Norbury with in excess of 100 years unexpired 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may not lend on a short lease

Lending institutions have set criteria when lending funds charged on leasehold property. Many will simply refrain from lending at all once the residual lease term drops under a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Norbury property.

Why use us for your lease extension in Norbury?

Retaining our service will provide you increased control over the value of your Norbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Norbury Lease Extension Case Studies:

Alfie, Norbury, South London,

Alfie owned a studio apartment in Norbury on the market with a lease of a few days over sixty years outstanding. Alfie on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.

Norbury case:

Dr B Patel completed a newly refurbished flat in Norbury in January 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Norbury with an extended lease were valued about £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 23 October 2079. Considering the 53 years remaining we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.