Top reasons for South West London lease extension

Top reasons for lease extension now:

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

With a long leasehold property in South West London, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in South West London with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has under 80 years remaining, under the current legislation the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.

South West London property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may not lend with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in South West London?

The lawyers that we work with undertake 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 Example Cases:

Ben, South West London, London,

Ben owned a high value apartment in South West London on the market with a lease of a little over 59 years remaining. Ben informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

South West London case:

Mr Daniel Reed took over the lease of a recently refurbished apartment in South West London in June 2012. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar homes in South West London with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease ended in 2098. Considering the 72 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.