Top reasons for South West London lease extension

Top reasons for lease extension now:

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

Unfortunately that a South West London residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the South West London property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. The majority of flat owners in South West London will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.

South West London property with a lease extension is almost the same value as a freehold

Leasehold properties in South West London with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not grant a mortgage on a short lease

Banks and building societies are inclined not grant a mortgage on short residential leases. You most probably encounter difficulties where you need to sell your flat in South West London if the unexpired lease term is less than the criteria set by the majority of banks and building societies. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of 65 years.

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

Regardless of whether you are a tenant or a landlord in South West London,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South West London valuers.

South West London Lease Extension Case Studies:

Katie, South West London, London,

Trailing lengthy discussions with the landlord of her basement flat in South West London, Katie started the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in March 2010. The landlord’s costs were negotiated to below six hundred pounds.

South West London case:

Ms Kelsey Howard was assigned a lease of a first floor flat in South West London in September 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in South West London with an extended lease were valued around £205,000. The average ground rent payable was £50 billed yearly. The lease end date was in 2104. Having 79 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.