There is no doubt about it a leasehold property in Norbury is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Norbury will qualify for this right; that being said a conveyancer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Norbury,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 in-depth market knowledge and the close ties they enjoy with Norbury valuers.
During the course of the last few months Leo, started to get close to the 80-year mark with the lease on his basement apartment in Norbury. In buying his flat twenty years ago, the lease term was of no relevance. Fortunately, he became aware that he needed to take action soon on a lease extension. Leo extended the lease at the eleventh hour in June. Leo and the freeholder eventually agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the figure would have increased by at least £1,125.
Last Summer we were approach by Mr and Mrs. C Mason , who completed a garden apartment in Norbury in May 2012. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Norbury with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease ran out on 5 November 2095. Given that there were 69 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
An example of a Lease Extension decision for a Norbury residence 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 23.25 years.