Why you should start your Southwark lease extension

Main reasons to commence your Southwark lease extension today:

Increase your lease and increase your Southwark property value

With a long leasehold premises in Southwark, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Southwark with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years left, under the current statute the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage with a short lease

Many mortgage lenders will be unwilling to lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will undoubtedly find it difficult in obtaining a mortgage and this could result in your Southwark property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Southwark lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Southwark,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Southwark valuers.

Southwark Lease Extension Example Cases:

Eliot, Southwark, South East London

Last year Eliot, came dangerously close to the eighty-year threshold with the lease on his garden flat in Southwark. In buying his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, he recognised he needed to take action soon on a lease extension. Eliot arranged for a lease extension just under the wire last March. Eliot and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £1,000.

Southwark case:

Mr A Moreau moved into a first floor apartment in Southwark in November 1998. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Southwark with a long lease were valued around £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated in 2106. Considering the 80 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.