Top reasons for Berrylands lease extension

Why you should start your Berrylands lease extension today:

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

There is no doubt about it a leasehold flat or house in Berrylands is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Berrylands will qualify for this right; nevertheless a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

Berrylands property with a lease extension is almost the same value as a freehold

Leasehold residencies in Berrylands with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lenders may not grant a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with undertake 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 Case Studies:

Jasper, Berrylands, South West London

In recent months Jasper, came dangerously close to the eighty-year mark with the lease on his one bedroom flat in Berrylands. In buying his flat two decades ago, the lease term was of little importance. Luckily, he noticed he needed to take action soon on Extending the lease. Jasper extended the lease at the eleventh hour in March. Jasper and the freeholder via the managing agents eventually agreed on an amount of £5,500 . If the lease had dipped lower than eighty years, the amount would have gone up by a minimum £925.

Berrylands case:

Mrs Sophia Johnson completed a one bedroom flat in Berrylands in September 2010. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Identical flats in Berrylands with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 billed per annum. The lease came to a finish in 2087. Having 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus expenses.