Top reasons for South East London lease extension

Top reasons for lease extension now:

A South East London leasehold property depreciates with the years remaining on the lease.

South East London leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most South East London tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in South East London you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

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

Leasehold premises in South East London with more than one hundred years left 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to grant a mortgage on a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in South East London?

Lease extensions in South East London can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with South East London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

South East London Lease Extension Case Summaries:

Kate, South East London, London,

Subsequent to protracted discussions with the freeholder of her basement flat in South East London, Kate initiated the lease extension process as the eighty year threshold was rapidly approaching. The lease extension completed in September 2015. The landlord’s fees were negotiated to slightly above 500 GBP.

South East London case:

In 2009 we were contacted by Dr U Howard who, having owned a first floor apartment in South East London in June 2009. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in South East London with a long lease were valued about £264,000. The average amount of ground rent was £60 invoiced annually. The lease ran out in 2078. Given that there were 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.