Bermondsey Lease Extension - Free Consultation

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Why you should commence your Bermondsey lease extension

Why you should start your Bermondsey lease extension today:

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

The nearer a residential lease in Bermondsey nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Bermondsey will qualify for this right; however a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not finance a property with a short lease

Mortgage companies are really restricting their approach as regards to properties in Bermondsey with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus reducing your market.

Lender Requirement
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Leeds Building Society 85 years remaining from the start 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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Bermondsey lease extensions?

Engaging our service will provide you better control over the value of your Bermondsey leasehold, as your property will be more valuable and marketable in terms 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:

Mia, Bermondsey, South East London,

After unsuccessful discussions with the freeholder of her studio flat in Bermondsey, Mia started the lease extension process as the 80 year threshold was quickly advancing. The transaction was finalised in March 2013. The landlord’s fees were kept to an absolute minimum.

Bermondsey case:

Mr and Mrs. R Bertrand moved into a ground floor apartment in Bermondsey in October 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable homes in Bermondsey with a long lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced monthly. The lease finished on 28 June 2076. Taking into account 52 years remaining we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.

Decision in Tower Hamlets

An example of a Freehold Enfranchisement case for a Bermondsey flat 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 unexpired lease term was 107 years.