Top reasons for Southwark lease extension

Why you should start your Southwark lease extension today:

Increase your lease and increase your Southwark property value

Unfortunately that a Southwark residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Southwark property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Southwark will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold properties in Southwark with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not lend with a short lease

Most mortgage companies require a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Even if you don't require a mortgage, you should be conscious that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so where they are unable to get a mortgage, then the value of the property could suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

What makes us experts in Southwark lease extensions?

The conveyancing solicitors that we work with handle Southwark lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Southwark Lease Extension Case Studies:

Austin, Southwark, South East London

Last October Austin, came perilously near to the eighty-year mark with the lease on his studio apartment in Southwark. Having bought his home two decades ago, the length of the lease was of minimal significance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Austin was able to extend his lease at the eleventh hour last August. Austin and the freeholder via the management company subsequently agreed on an amount of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,050.

Southwark case:

Mr K Hernández took over the lease of a recently refurbished apartment in Southwark in November 1999. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar premises in Southwark with a long lease were valued about £218,000. The mid-range ground rent payable was £45 collected annually. The lease ran out on 2 June 2088. Having 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of legals.