Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Bermondsey. Clearly, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Bermondsey have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give careful attention before delaying your Bermondsey lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Bermondsey can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Bermondsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen owned a high value flat in Bermondsey on the market with a lease of fraction over 59 years unexpired. Owen on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2014 we were approached by Ms Louise Martínez who, having was assigned a lease of a first floor apartment in Bermondsey in September 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Bermondsey with an extended lease were worth £285,000. The average amount of ground rent was £45 collected per annum. The lease came to a finish in 2097. Given that there were 72 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Bermondsey residence is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case was in relation to 41 flats. The unexpired residue of the current lease was 107 years.