Top reasons for Berrylands lease extension

Why you should commence your Berrylands lease extension today:

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

With a long leasehold property in Berrylands, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Berrylands with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the landlord can calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Berrylands with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders will not loan monies with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will cause difficulties when you wish to market or remortgage your property as it will be practically unmortgageable. Even though you might not have an immediate plan to sell but when you do your buyer will have to hold off for two years before being able to exercise the right to a a lease extension.

What makes us experts in Berrylands lease extensions?

The lawyers that we work with procure Berrylands 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 lawyer we work with provide it.

Berrylands Lease Extension Case Summaries:

Mason, Berrylands, South West London,

Mason owned a conversion flat in Berrylands being sold with a lease of just over fifty eight years unexpired. Mason on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.

Berrylands case:

Dr N Cooper took over the lease of a one bedroom apartment in Berrylands in February 2006. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable homes in Berrylands with a long lease were in the region of £290,000. The average ground rent payable was £60 collected yearly. The lease ran out in 2106. Having 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.