Top reasons for South East London lease extension

Why you should start your South East London lease extension today:

Increase your lease and increase your South East London property value

With a domestic leasehold property in South East London, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in South East London with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has less than eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not loan monies on a short lease

Many banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this will result in your South East London property being difficult to dispose of or to obtain finance on.

What makes us experts in South East London lease extensions?

The lawyers that we work with undertake South East London 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 conveyancing solicitor we work with provide it.

South East London Lease Extension Case Summaries:

Lucy, South East London, London,

Trailing protracted correspondence with the freeholder of her garden apartment in South East London, Lucy started the lease extension process as the 80 year threshold was swiftly coming. The lease extension was concluded in June 2010. The freeholder’s costs were kept to an absolute minimum.

South East London case:

Last Christmas we were e-mailed by Mr and Mrs. E Lefèvre , who purchased a studio flat in South East London in January 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in South East London with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated in 2074. Considering the 50 years outstanding we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.