 As the station abutted the arches of the LSWR's viaduct, it acted as an obstacle to any increase in the number of lines serving Waterloo station (renamed from Waterloo Bridge station in 1886). Urban growth in the area of what is now south west London, through which trains from Waterloo ran, led to congestion at the station and in 1896 the LSWR formally presented the LNC with a proposal to provide the LNC with a new station in return for the existing station. The LNC agreed to the proposals, in return for the LSWR granting the LNC control of the design of the new station and leasing the new station to the LNC for a token rent in perpetuity, providing new rolling stock, removing any limit on the number of passengers using the Necropolis service, and providing the free carriage of machinery and equipment to be used in the cemetery. Although the LSWR was extremely unhappy at what they considered excessive demands, in May 1899 the companies signed an agreement, in which the LSWR gave in to every LNC demand. In addition the LSWR paid £ 12,000 compensation (about £ 1.22 million in terms of 2016 consumer spending power) for the inconvenience of relocating the LNC station and offices, and agreed that mourners returning from the cemetery could travel on any LSWR train to Waterloo, Vauxhall or Clapham Junction. A site for the replacement terminus was bought by the LSWR in 1899, south of the existing site and on the opposite side of Westminster Bridge Road. The new station was completed on 8 February 1902, and the LSWR viaduct was widened to serve a greatly enlarged Waterloo station, destroying all traces of the original LNC terminus.
