Why you should start your Bermondsey lease extension

Top reasons for lease extension now:

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

Chances are that 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

Leasehold properties in Bermondsey with in excess of 100 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

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

Many banks and building societies will be unwilling to lend on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Bermondsey property being difficult to dispose of or to obtain finance on.

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

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 experience and the close ties they enjoy with Bermondsey valuers.

Bermondsey Lease Extension Case Summaries:

Hunter, Bermondsey, South East London,

Hunter was the the leasehold owner of a high value flat in Bermondsey being marketed with a lease of just over fifty eight years left. Hunter on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

Bermondsey case:

Mr and Mrs. T Sharif bought a purpose-built apartment in Bermondsey in March 1998. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable flats in Bermondsey with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 billed annually. The lease ran out on 26 May 2078. Considering the 52 years left we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.