Why you should commence your South West London lease extension

Top reasons for lease extension now:

Increase your lease and increase your South West London property value

The value of South West London leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is below than 80 years

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

Leasehold premises in South West London with over 100 years outstanding 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may decide not to lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic when you wish to dispose of or refinance your property as it will be practically unmortgageable. Even though you may have no imminent intention to sell but when you do your purchaser will need to hold off for two years before they can initiate the legal procedures for a lease extension.

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

Retaining our service will provide you increased control over the value of your South West London leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

South West London Lease Extension Example Cases:

Jacob, South West London, London

Two years ago Jacob, started to get close to the eighty-year mark with the lease on his purpose- built apartment in South West London. In buying his home 18 years previously, the length of the lease was of minimal interest. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Jacob was able to extend his lease just under the wire in March. Jacob and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had dipped lower than eighty years, the amount would have gone up by a minimum £1,000.

South West London case:

Dr Zoe Brown owned a one bedroom apartment in South West London in January 2005. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical properties in South West London with a long lease were in the region of £181,600. The average amount of ground rent was £55 collected annually. The lease expired in 2078. Considering the 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including professional charges.