Surbiton leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Surbiton will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Surbiton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Surbiton valuers.
Subsequent to unsuccessful correspondence with the freeholder of her garden flat in Surbiton, Freya initiated the lease extension process as the eighty year mark was fast coming. The lease extension completed in November 2008. The freeholder’s costs were negotiated to slightly above 500 GBP.
Mr Harrison Smith moved into a one bedroom flat in Surbiton in May 1998. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical flats in Surbiton with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease expired in 2085. Given that there were 60 years outstanding we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus fees.
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.