Main reasons to start your South London lease extension

Top reasons for lease extension now:

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

With a long leasehold property in South London, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in South London with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has less than eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

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

It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions will not loan monies with a short lease

Lending institutions have specific criteria when lending funds secured on leasehold homes. Some will simply not lend at all once the remaining lease term goes below a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years suitable security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your South London property.

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

Irrespective of whether you are a tenant or a freeholder in South London,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South London valuers.

South London Lease Extension Example Cases:

Amelia, South London, London,

Following unsuccessful negotiations with the freeholder of her two bedroom flat in South London, Amelia commenced the lease extension process as the 80 year mark was rapidly approaching. The transaction completed in January 2011. The freeholder’s fees were restricted to a tad over 500 GBP.

South London case:

In 2012 we were phoned by Mr and Mrs. A Scott who, having bought a garden flat in South London in March 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparative homes in South London with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 17 August 2104. Considering the 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.