Main reasons to start your Bermondsey lease extension

Why you should commence your Bermondsey lease extension today:

Increase your lease and increase your Bermondsey property value

It’s an underpublicised certainty that a Bermondsey residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Bermondsey property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Bermondsey will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

Leasehold premises in Bermondsey with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not issue a mortgage on a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Bermondsey?

The lawyers that we work with procure Bermondsey 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 conveyancing solicitor we work with provide it.

Bermondsey Lease Extension Example Cases:

Nathan, Bermondsey, South East London

18 months ago Nathan, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Bermondsey. Having purchased his property two decades ago, the lease term was of little bearing. Luckily, he recognised he would soon be paying way over the odds for Extending the lease. Nathan was able to extend his lease just under the wire in March. Nathan and the freeholder via the management company subsequently agreed on a premium of £5,000 . If the lease had dropped below 80 years, the sum would have escalated by a minimum £1,025.

Bermondsey case:

Mrs W Morgan was assigned a lease of a one bedroom apartment in Bermondsey in January 2010. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Bermondsey with a long lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired on 18 September 2081. Considering the 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.