There is no doubt about it a leasehold flat or house in Bermondsey is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Bermondsey will qualify for this right; however a lawyer should be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Bermondsey with more than 100 years remaining on the lease are often regarded as a ‘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 freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Bermondsey can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bermondsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley owned a studio flat in Bermondsey being marketed with a lease of a little over 61 years left. Finley informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. B Lefebvre owned a ground floor flat in Bermondsey in March 2006. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar properties in Bermondsey with a long lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 28 June 2094. Having 68 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Bermondsey residence 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 related to 41 flats. The unexpired lease term was 107 years.