Why you should commence your South London lease extension

Main reasons to start your South London lease extension today:

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

South London leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in South London will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.

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

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

Mortgage lenders will not grant a mortgage on a short lease

Almost all mortgage lenders require a lengthy amount of time remaining on a leasehold property before they will consider it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they can't obtain a mortgage, then the value of your property could be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in South London?

Engaging our service will provide you enhanced control over the value of your South London leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

South London Lease Extension Example Cases:

James, South London, London

Last October James, started to get close to the eighty-year threshold with the lease on his garden apartment in South London. In buying his flat two decades ago, the unexpired term was of little interest. Fortunately, he became aware that he needed to take action soon on a lease extension. James arranged for a lease extension just under the wire in August. James and the landlord ultimately agreed on an amount of £6,000 . If the lease had gone lower than eighty years, the price would have escalated by a minimum £975.

South London case:

Last Autumn we were approach by Mr and Mrs. P Edwards , who bought a one bedroom flat in South London in September 2008. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar premises in South London with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 24 July 2096. Taking into account 70 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.