The nearer a domestic lease in Bermondsey nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Bermondsey will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Bermondsey with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages |
Lease extensions in Bermondsey can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Reuben was the the leasehold proprietor of a studio flat in Bermondsey being marketed with a lease of a little over 61 years remaining. Reuben on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert advice and secured satisfactory deal without going to tribunal and sell the property.
Last Christmas we were phoned by Dr Ali Lewis , who acquired a recently refurbished apartment in Bermondsey in January 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative residencies in Bermondsey with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 invoiced yearly. The lease expiry date was on 23 August 2105. Taking into account 79 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
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 affected 41 flats. The remaining number of years on the lease was 107 years.