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Why you should start your Norbury lease extension

Why you should commence your Norbury lease extension today:

Increase your lease and increase your Norbury property value

When it comes to domestic leasehold property in Norbury, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Norbury with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to loan monies on a short lease

Banks and building societies will not grant a mortgage on short residential leases. You are likely to encounter problems where you want to sell your flat in Norbury if the remaining term of your lease is under the criteria set by most mortgage companies. Different mortgage companies have varying criteria but in the main theyrequire an unexpired term of at least 65 years.

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.
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.

What makes us experts in Norbury lease extensions?

Retaining our service gives you better 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 decide 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 Example Cases:

Jackson, Norbury, South London,

Jackson was the the leasehold proprietor of a high value flat in Norbury being sold with a lease of fraction over 59 years left. Jackson on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.

Norbury case:

Ms Amy Evans was assigned a lease of a one bedroom apartment in Norbury in July 2008. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Norbury with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2074. Taking into account 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.

Decision in Lambeth

An example of a Lease Extension decision for a Norbury flat 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 affected 1 flat. The remaining number of years on the lease was 23.25 years.