When it comes to long leasehold premises in Berkeley, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Berkeley with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below eighty years remaining, under the current statute the freeholder can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a landlord in Berkeley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Berkeley valuers.
In recent months Archie, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Berkeley. Having bought his flat two decades ago, the unexpired term was of minimal importance. by good luck, he realised he needed to take steps soon on a lease extension. Archie was able to extend his lease just in the nick of time last August. Archie and the freeholder ultimately settled on the final figure of £6,000 . If the lease had dropped below eighty years, the amount would have become more exhorbitant by at least £1,025.
In 2009 we were approached by Ms Amy Ramírez who, having acquired a one bedroom flat in Berkeley in February 1998. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar properties in Berkeley with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 billed monthly. The lease elapsed in 2090. Having 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus costs.
In 2011 we were called by Mrs Amber Wilson who, having bought a newly refurbished apartment in Berkeley in February 2011. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Berkeley with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded on 16 March 2101. Given that there were 75 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.