Berkeley leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Berkeley will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Berkeley with more than one hundred years outstanding on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Berkeley can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
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.
During the course of the last few months Connor, started to get close to the eighty-year mark with the lease on his leasehold apartment in Berkeley. In buying his property two decades ago, the length of the lease was of minimal concern. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Connor was able to extend his lease at the eleventh hour in July. Connor and the landlord subsequently settled on the final figure of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £925.
Mr and Mrs. U François owned a one bedroom flat in Berkeley in April 2009. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Berkeley with a long lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2092. Having 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.
Dr Dexter Bennett completed a basement flat in Berkeley in March 2012. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable flats in Berkeley with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected per annum. The lease finished in 2103. Taking into account 78 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.