Top reasons for Berrylands lease extension

Main reasons to start your Berrylands lease extension today:

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

Berrylands leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Berrylands residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Berrylands you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Berrylands with more than one hundred years outstanding 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not finance a property with a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on any leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is probable that someone wishing to purchase your property in the future might well do, so if they can't secure a mortgage, then the market price of the property will likely suffer. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

Get in touch with one of our Berrylands lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors 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 conveyancer we work with provide it.

Berrylands Lease Extension Example Cases:

William, Berrylands, South West London,

William owned a 2 bedroom flat in Berrylands on the market with a lease of just over sixty years left. William on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.

Berrylands case:

In 2014 we were phoned by Mr and Mrs. O Green who, having owned a purpose-built apartment in Berrylands in November 2007. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Berrylands with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2095. Taking into account 70 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.