Bermondsey leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Leasehold owners in Bermondsey will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Bermondsey with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Bermondsey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bermondsey valuers.
Oscar was the the leasehold proprietor of a studio flat in Bermondsey on the market with a lease of fraction over 72 years unexpired. Oscar informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Christmas we were approach by Mr V Stewart , who was assigned a lease of a purpose-built flat in Bermondsey in November 1996. The question was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Bermondsey with a long lease were worth £275,000. The average ground rent payable was £45 invoiced quarterly. The lease ended in 2094. Given that there were 69 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement case for a Bermondsey property 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 term as at the valuation date was 107 years.