Stop! Your Lease Extension in Southwark Could Be FREE

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Many leaseholders in Southwark are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Southwark has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Southwark lease extension

Why you should commence your Southwark lease extension today:

Increase your lease and increase your Southwark property value

The only way is down when it comes to Southwark lease terms. Southwark properties that have a lease term shorter than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will increase.

An extended lease has roughly the same value as a freehold

Leasehold premises in Southwark with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not finance a property with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be mindful that it is reasonable to assume that someone intending to acquire your property in the future might well do, so where they can't secure a mortgage, then the market price of the property could be adversely impacted. Since 2008 most banks and building societies have increased the required minimum lease length that they are willing to lend on

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Halifax Minimum 70 years from the date of the mortgage.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Southwark lease extensions?

The lawyers that we work with undertake 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 conveyancer we work with provide it.

Southwark Lease Extension Example Cases:

Jamie, Southwark, South East London

During the course of the last few months Jamie, came seriously near to the 80-year threshold with the lease on his two bedroom flat in Southwark. Having purchased his home two decades ago, the lease term was of no concern. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Jamie arranged for a lease extension just under the wire last June. Jamie and the landlord subsequently settled on the final figure of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £950.

Southwark case:

Last Summer we were contacted by Mr and Mrs. E Evans , who acquired a studio flat in Southwark in November 2000. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable residencies in Southwark with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out in 2082. Considering the 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.

Decision in Tower Hamlets

An example of a Freehold Enfranchisement case for a Southwark property is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case related to 41 flats. The unexpired lease term was 107 years.