Main reasons to commence your Berrylands lease extension

Main reasons to start your Berrylands lease extension today:

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

With a long leasehold property in Berrylands, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Residents in Berrylands with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Berrylands with over one hundred 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may not grant a mortgage with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will undoubtedly find it difficult to obtain a mortgage and this could result in your Berrylands property being difficult to dispose of or refinance.

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

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

Berrylands Lease Extension Case Summaries:

Jordan, Berrylands, South West London,

Following protracted correspondence with the landlord of her two bedroom flat in Berrylands, Jordan commenced the lease extension process as the 80 year mark was fast approaching. The transaction completed in November 2015. The freeholder’s fees were kept to an absolute minimum.

Berrylands case:

Last April we were approach by Mrs Y Peterson , who acquired a ground floor apartment in Berrylands in July 2007. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical homes in Berrylands with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 billed per annum. The lease concluded in 2084. Given that there were 59 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.