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Top reasons for Bermondsey lease extension

Why you should start your Bermondsey lease extension today:

Increase your lease and increase your Bermondsey property value

On the balance of probabilities if you own a flat in Bermondsey you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to finance a property with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

Why use us for your lease extension in Bermondsey?

Irrespective of whether you are a tenant or a freeholder in Bermondsey,the lease extension solicitors that we work with will always be happy 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.

Bermondsey Lease Extension Case Summaries:

David, Bermondsey, South East London,

David was the the leasehold proprietor of a conversion flat in Bermondsey being sold with a lease of fraction over 59 years left. David informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.

Bermondsey case:

Last Autumn we were contacted by Mr and Mrs. B Adams , who moved into a first floor flat in Bermondsey in July 2002. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical properties in Bermondsey with a long lease were in the region of £270,000. The average ground rent payable was £65 collected quarterly. The lease expired in 2093. Having 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.

Decision in Tower Hamlets

An example of a Freehold Enfranchisement decision for a Bermondsey premises 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 affected 41 flats. The unexpired term as at the valuation date was 107 years.