Why you should commence your Bermondsey lease extension

Top reasons for lease extension now:

A Bermondsey lease depreciates with the years remaining on the lease.

The market value of Bermondsey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years

Bermondsey property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Bermondsey with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not grant a mortgage on a short lease

Many banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to acquire your property in the future might well do, so if they are unable to secure a mortgage, then the financial worth of your property will likely be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to accept

Why use us for your lease extension in Bermondsey?

Engaging our service gives you better control over the value of your Bermondsey leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bermondsey Lease Extension Example Cases:

Seth, Bermondsey, South East London

In recent months Seth, started to get close to the eighty-year mark with the lease on his ground floor apartment in Bermondsey. In buying his property two decades ago, the unexpired term was of minimal importance. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Seth extended the lease at the eleventh hour in June. Seth and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had descended below eighty years, the amount would have become more exhorbitant by at least £850.

Bermondsey case:

Last Autumn we were called by Dr C González , who owned a first floor flat in Bermondsey in February 1995. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative residencies in Bermondsey with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended on 3 February 2089. Given that there were 63 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.