Main reasons to start your South West London lease extension

Main reasons to start your South West London lease extension today:

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

It’s an underpublicised certainty that a South West London residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the South West London property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in South West London will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced 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

Leasehold premises in South West London with more than one hundred years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to lend with a short lease

Mortgage lenders have set criteria when loaning funds charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years suitable security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your South West London home.

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

The conveyancing solicitors that we work with procure South West London 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.

South West London Lease Extension Case Studies:

Aaron, South West London, London,

Aaron was the the leasehold owner of a high value flat in South West London being sold with a lease of a few days over 59 years left. Aaron informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

South West London case:

Dr Eliot Mercier took over the lease of a first floor apartment in South West London in July 2004. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in South West London with a long lease were in the region of £223,400. The average amount of ground rent was £60 billed annually. The lease ran out in 2084. Having 59 years unexpired we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including fees.