Why you should start your South London lease extension

Top reasons for lease extension now:

A South London leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a South London 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 early years due to the deflation being disguised by increases in the South London property prices.Once your lease gets to 85ish years, you need to start considering 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 dips under eighty years - otherwise a higher amount will be due. Most leasehold owners in South London will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to issue a mortgage on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are considered to be insufficient security.

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

Lease extensions in South London can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring South London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

South London Lease Extension Example Cases:

Nathaniel, South London, London

Twenty four months ago Nathaniel, started to get close to the eighty-year mark with the lease on his leasehold flat in South London. In buying his property two decades ago, the length of the lease was of no bearing. Thankfully, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Nathaniel arranged for a lease extension just ahead of time in July. Nathaniel and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had gone lower than eighty years, the premium would have increased by at least £850.

South London case:

Last Spring we were contacted by Dr Samuel Harris , who completed a one bedroom flat in South London in September 2011. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar flats in South London with a long lease were worth £235,600. The mid-range ground rent payable was £60 collected quarterly. The lease ran out in 2087. Given that there were 62 years outstanding we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.