Why you should commence your Southwark lease extension

Top reasons for lease extension now:

Increase your lease and increase your Southwark property value

When it comes to domestic leasehold property in Southwark, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should 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 becomes disproportionately more expensive notably once there are fewer than eighty years left. Leasehold owners in Southwark with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

Southwark property with a lease extension is almost the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to finance a property with a short lease

Why use us for your lease extension in Southwark?

The conveyancing solicitors 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 lawyer we work with provide it.

Southwark Lease Extension Example Cases:

Ben, Southwark, South East London,

Ben owned a high value flat in Southwark on the market with a lease of a little over 61 years left. Ben on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

Southwark case:

Dr Courtney Fournier purchased a one bedroom apartment in Southwark in March 2008. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable homes in Southwark with a long lease were worth £220,400. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish in 2090. Having 64 years remaining we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including professional charges.