It’s an underpublicised truth that a Surbiton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Surbiton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Surbiton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Surbiton 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.
Two years ago Nathaniel, came precariously near to the eighty-year threshold with the lease on his studio apartment in Surbiton. Having bought his flat two decades ago, the lease term was of little interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Nathaniel arranged for a lease extension just in the nick of time in March. Nathaniel and the freeholder eventually settled on the final figure of £6,000 . If he had missed the deadline, the figure would have escalated by at least £1,150.
In 2013 we were e-mailed by Mrs F Bennett who, having acquired a first floor apartment in Surbiton in May 1999. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Surbiton with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected yearly. The lease expiry date was on 17 October 2096. Having 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
An example of a Lease Extension case 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 was in relation to 1 flat.