Why you should start your Norwood lease extension

Top reasons for lease extension now:

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

Norwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Norwood enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Norwood you must see if your lease has between 70 and ninety years left. There are good reasons why a Norwood flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay

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

Leasehold properties in Norwood with more than 100 years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to finance a property on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Norwood lease extensions?

Using our service gives you better control over the value of your Norwood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Norwood Lease Extension Case Summaries:

Madeleine, Norwood, South London,

Subsequent to unsuccessful discussions with the freeholder of her leasehold flat in Norwood, Madeleine started the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in May 2007. The landlord’s charges were kept to an absolute minimum.

Norwood case:

Dr A Miller moved into a one bedroom apartment in Norwood in May 2010. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar properties in Norwood with a long lease were valued around £254,200. The mid-range ground rent payable was £60 billed annually. The lease expired in 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including fees.

Norwood case:

Last Christmas we were contacted by Ms Y Howard , who acquired a studio flat in Norwood in May 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Norwood with 100 year plus lease were valued about £210,600. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 21 October 2088. Having 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.