Why you should start your Bermondsey lease extension

Why you should start your Bermondsey lease extension today:

Increase your lease and increase your Bermondsey property value

Bermondsey leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bermondsey will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Lenders may decide not to lend on a short lease

Almost all banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone intending to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the market price of the property will likely be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are willing to lend on

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

Retaining our service gives you increased control over the value of your Bermondsey leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors 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:

Nathaniel, Bermondsey, South East London,

Nathaniel owned a conversion apartment in Bermondsey on the market with a lease of just over 72 years remaining. Nathaniel informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Bermondsey case:

In 2009 we were phoned by Mr and Mrs. E Garcia who, having moved into a one bedroom flat in Bermondsey in August 1996. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable flats in Bermondsey with a long lease were worth £201,200. The mid-range amount of ground rent was £55 billed per annum. The lease finished on 25 October 2082. Having 56 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.