Stop! Your Lease Extension in Bermondsey Could Be FREE

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Many leaseholders in Bermondsey are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Bermondsey has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Bermondsey lease extension

Main reasons to commence your Bermondsey lease extension today:

Increase your lease and increase your Bermondsey property value

Bermondsey leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Bermondsey will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.

Bermondsey property with a lease extension is almost the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This will cause difficulties as and when you wish to market or refinance your flat as it will be practically unmortgageable. You might not have an imminent desire to sell but when you do your purchaser will need to wait two years before they can start the legal procedures for an extension to the lease.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Coventry Building Society 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.
Halifax 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.

Get in touch with one of our Bermondsey lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with undertake Bermondsey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Bermondsey Lease Extension Example Cases:

Molly, Bermondsey, South East London,

Subsequent to unsuccessful negotiations with the freeholder of her ground floor apartment in Bermondsey, Molly commenced the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in February 2014. The landlord’s fees were negotiated to a tad over 600 GBP.

Bermondsey case:

Last month we were approach by Dr Seth Edwards , who moved into a basement flat in Bermondsey in November 1996. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Bermondsey with an extended lease were in the region of £280,000. The average amount of ground rent was £45 billed per annum. The lease elapsed in 2096. Given that there were 70 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.

Decision in Tower Hamlets

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 affected 41 flats. The remaining number of years on the lease was 107 years.