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Top reasons for Surbiton lease extension


Main reasons to commence your Surbiton lease extension today:

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

When it comes to domestic leasehold property in Surbiton, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in Surbiton with a lease nearing 81 years unexpired should seriously think of extending it without delay. When a lease has fewer than eighty years outstanding, under the current statute the landlord can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

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

Lending institutions will not loan monies with a short lease

Mortgage companies do not like short residential leases. You are likely to encounter problems if you need to sell your flat in Surbiton if the unexpired lease term is less than the criteria set by the majority of banks and building societies. Different lenders have different criteria but generally they are looking for an unexpired term of at least seventy years.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
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.
Halifax Minimum 70 years from the date of the mortgage.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
Yorkshire 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.

What makes us experts in Surbiton lease extensions?

Regardless of whether you are a tenant or a landlord in Surbiton,the lease extension solicitors 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 Surbiton valuers.

Surbiton Lease Extension Example Cases:

Catherine, Surbiton, South West London,

Off the back of protracted correspondence with the landlord of her ground floor flat in Surbiton, Catherine commenced the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in November 2008. The landlord’s costs were negotiated to about 550 pounds.

Surbiton case:

Dr Aiden Miller was assigned a lease of a one bedroom apartment in Surbiton in August 1997. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable properties in Surbiton with an extended lease were valued about £184,000. The average amount of ground rent was £55 collected every twelve months. The lease ran out in 2077. Considering the 53 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.

Decision in Kingston upon Thames

An example of a Lease Extension matter before the tribunal for a Surbiton residence 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 affected 1 flat.