Main reasons to start your South West London lease extension

Top reasons for lease extension now:

Increase your lease and increase your South West London property value

The re-sale value of a leasehold property in South West London depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised in advance of the eighty year mark. Statute enables South West London qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not lend on a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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 freeholder in South West London,the lease extension experts 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 Summaries:

Nathaniel, South West London, London

Last October Nathaniel, came dangerously close to the 80-year mark with the lease on his first floor flat in South West London. In buying his property twenty years ago, the lease term was of no concern. by good luck, he realised he needed to take steps soon on Extending the lease. Nathaniel arranged for a lease extension at the eleventh hour last April. Nathaniel and the freeholder subsequently agreed on an amount of £5,500 . If the lease had fallen below eighty years, the figure would have become more exhorbitant by a minimum £875.

South West London case:

Last November we were e-mailed by Ms Samantha Johnson , who took over the lease of a ground floor apartment in South West London in August 2000. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Comparative residencies in South West London with a long lease were worth £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease elapsed in 2083. Taking into account 58 years left we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.