Top reasons for Southwark lease extension

Top reasons for lease extension now:

A Southwark lease depreciates with the years remaining on the lease.

Unfortunately that a Southwark residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Southwark property market.Once your lease nears 85ish years, you need to start thinking about 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 falls below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Southwark will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.

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

Leasehold properties in Southwark with more than one hundred years left 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to loan monies on a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult to obtain a mortgage and this will result in your Southwark property being difficult to dispose of or to obtain finance on.

What makes us experts in Southwark lease extensions?

Irrespective of whether you are a tenant or a landlord in Southwark,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 in-depth market knowledge and the close ties they enjoy with Southwark valuers.

Southwark Lease Extension Example Cases:

Leah, Southwark, South East London,

Trailing lengthy discussions with the freeholder of her studio apartment in Southwark, Leah started the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was finalised in May 2014. The landlord’s costs were kept to an absolute minimum.

Southwark case:

In 2009 we were phoned by Mr and Mrs. M Díaz who, having took over the lease of a recently refurbished flat in Southwark in January 2006. The question was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Southwark with an extended lease were in the region of £245,000. The mid-range ground rent payable was £45 billed monthly. The lease expired on 12 August 2094. Having 68 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.