The closer a domestic lease in Berkeley gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining 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 extend the lease without delay. The majority of flat owners in Berkeley will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Berkeley can be a difficult process. We recommend you obtain guidance from a lawyer 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 procuring Berkeley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her two bedroom apartment in Berkeley, Naomi started the lease extension process as the eighty year deadline was quickly nearing. The transaction completed in March 2011. The landlord’s charges were negotiated to approximately 500 GBP.
In 2011 we were approached by Dr F Taylor who, having was assigned a lease of a first floor apartment in Berkeley in February 1995. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Berkeley with an extended lease were valued about £285,000. The average amount of ground rent was £55 collected per annum. The lease concluded on 27 October 2104. Considering the 79 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
Mr W Moreau was assigned a lease of a garden flat in Berkeley in February 2010. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Berkeley with an extended lease were in the region of £193,400. The average amount of ground rent was £65 collected quarterly. The lease finished in 2084. Given that there were 59 years unexpired we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.