Top reasons for South London lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in South London depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed well before the eighty year threshold. Leasehold Reform legislation enables South London qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in South London with over 100 years outstanding 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 estate charges justify it.

Lending institutions will not lend on a short lease

Most mortgage lenders insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should be aware that it is probable that someone wanting to purchase your property in the future might well do, so if they are unable to get a mortgage, then the value of the property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

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

Lease extensions in South London can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 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 London Lease Extension Example Cases:

Mollie, South London, London,

Off the back of unsuccessful negotiations with the freeholder of her first floor apartment in South London, Mollie started the lease extension process just as her lease was coming close to the crucial 80-year mark. The lease extension was finalised in February 2008. The freeholder’s charges were kept to an absolute minimum.

South London case:

Last Autumn we were called by Mr and Mrs. A Jones , who moved into a ground floor apartment in South London in October 1999. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar properties in South London with a long lease were valued about £210,000. The mid-range ground rent payable was £50 billed monthly. The lease expired on 26 May 2106. Given that there were 80 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.