Stop! Your Lease Extension in Surbiton Could Be FREE

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Many leaseholders in Surbiton are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Surbiton has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Surbiton lease extension

Main reasons to commence your Surbiton lease extension today:

A Surbiton leasehold property depreciates with the years remaining on the lease.

Surbiton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Surbiton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Surbiton you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Surbiton leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may not loan monies with a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be insufficient for lending purposes.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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 Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Surbiton lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Surbiton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Surbiton valuers.

Surbiton Lease Extension Case Studies:

Archie, Surbiton, South West London,

Archie owned a high value flat in Surbiton on the market with a lease of just over 61 years outstanding. Archie informally spoke with his landlord a well known Bristol-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 a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.

Surbiton case:

In 2011 we were e-mailed by Mr and Mrs. T Thomas who, having owned a basement apartment in Surbiton in August 1997. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparable flats in Surbiton with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 collected annually. The lease finished on 15 February 2077. Considering the 51 years left we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.

Decision in Kingston upon Thames

An example of a Lease Extension matter before the tribunal for a Surbiton premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.