Why you should commence your South East London lease extension

Main reasons to commence your South East London lease extension today:

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

The market value of a leasehold property in South East London depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised prior to the 80 year mark. Leasehold Reform legislation enables South East London qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold properties in South East London with in excess of 100 years remaining on the lease are often referred to as ‘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 freehold unless savings on ground rent and estate charges warrant it.

Lending institutions will not lend on a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once an unexpired lease term drops under a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to remortgage your South East London property.

What makes us experts in South East London lease extensions?

The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.

South East London Lease Extension Example Cases:

Kyle, South East London, London,

Kyle owned a 2 bedroom apartment in South East London being marketed with a lease of fraction over 72 years remaining. Kyle informally approached his freeholder a well known Bristol-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 increase every twenty five years thereafter. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured an acceptable resolution informally and readily saleable.

South East London case:

Dr O Hernández moved into a one bedroom apartment in South East London in September 2003. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in South East London with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 22 April 2105. Given that there were 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.