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Why you should commence your Upper Norwood lease extension

Why you should commence your Upper Norwood lease extension today:

Increase your lease and increase your Upper Norwood property value

On the balance of probabilities if you own a flat in Upper Norwood you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should be conscious that it is probable that someone wanting to purchase your property in the future might well do, so if they are unable to obtain a mortgage, then the value of the property could be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to accept

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Halifax Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Upper Norwood?

The lawyers that we work with handle Upper Norwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Upper Norwood Lease Extension Case Studies:

Isabelle, Upper Norwood, South London,

After lengthy correspondence with the freeholder of her basement flat in Upper Norwood, Isabelle started the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was concluded in June 2009. The freeholder’s charges were restricted to below 600 GBP.

Upper Norwood case:

In 2009 we were approached by Dr Arthur Sánchez who, having purchased a first floor apartment in Upper Norwood in September 1997. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Upper Norwood with 100 year plus lease were worth £243,000. The average ground rent payable was £65 billed every twelve months. The lease ended on 10 March 2088. Given that there were 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.

Decision in Bromley

An example of a Lease Extension matter before the tribunal for a Upper Norwood flat is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case affected 1 flat. The remaining number of years on the lease was 26.38 years.