Main reasons to start your South London lease extension

Main reasons to commence your South London lease extension today:

A South London lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a South London residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in South London will meet the qualifying criteria; nevertheless a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

South London property with a lease extension has roughly the same value as a freehold

Leasehold residencies in South London with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not grant a mortgage with a short lease

Almost all mortgage lenders will not grant a mortgage on a lease with less than 70 years left to run - although this varies between mortgage companies. A buyer will no doubt find it difficult to obtain a mortgage and this could result in your South London property becoming difficult to sell or to obtain finance on.

Get in touch with one of our South London lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle South 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 London Lease Extension Case Summaries:

Edward, South London, London,

Edward owned a high value apartment in South London being sold with a lease of fraction over 72 years outstanding. Edward informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

South London case:

Mr and Mrs. S Collins purchased a recently refurbished apartment in South London in January 1999. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical premises in South London with a long lease were worth £260,200. The average amount of ground rent was £65 billed per annum. The lease terminated on 21 July 2091. Having 66 years unexpired we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of fees.