Main reasons to commence your Bromley lease extension

Main reasons to start your Bromley lease extension today:

Increase your lease and increase your Bromley property value

When it comes to long leasehold premises in Bromley, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Leasehold owners in Bromley with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years left, under the relevant Act the landlord can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Bromley 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not finance a property on a short lease

Banks and building societies are inclined not grant a mortgage on short residential leases. You are likely to encounter problems if you wish to sell your flat in Bromley if the remaining term of your lease is less than the criteria set by the majority of banks and building societies. Different mortgage companies have varying requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

What makes us experts in Bromley lease extensions?

Retaining our service gives you better control over the value of your Bromley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bromley Lease Extension Example Cases:

Naomi, Bromley, South East London,

After protracted discussions with the freeholder of her garden apartment in Bromley, Naomi commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension was concluded in May 2006. The freeholder’s charges were restricted to about 600 GBP.

Bromley case:

In 2011 we were phoned by Mr and Mrs. G David who, having moved into a studio flat in Bromley in July 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable residencies in Bromley with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced annually. The lease ended in 2105. Having 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.