Why you should start your South West London lease extension

Main reasons to start your South West London lease extension today:

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

South West London leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in South West London will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.

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

Leasehold residencies in South West London with over 100 years outstanding on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not issue a mortgage on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be inadequate security.

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 lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South West London valuers.

South West London Lease Extension Example Cases:

Sarah, South West London, London,

After lengthy correspondence with the freeholder of her studio flat in South West London, Sarah commenced the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was concluded in May 2011. The freeholder’s charges were negotiated to under 450 GBP.

South West London case:

Last Summer we were called by Dr Tommy Parker , who completed a first floor apartment in South West London in September 2010. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparative premises in South West London with 100 year plus lease were valued around £225,800. The mid-range amount of ground rent was £60 collected yearly. The lease expired in 2085. Given that there were 60 years remaining we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 plus fees.