As the length of the unexpired term of a Berkeley domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 100 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 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Berkeley will qualify for this right; however a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In limited 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 considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service gives you enhanced control over the value of your Berkeley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold proprietor of a 2 bedroom flat in Berkeley on the market with a lease of just over 59 years outstanding. Dylan informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and secured an acceptable deal informally and sell the property.
Last year we were e-mailed by Mr and Mrs. M Girard , who completed a newly refurbished apartment in Berkeley in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Berkeley with 100 year plus lease were valued around £275,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish in 2102. Given that there were 76 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Last month we were e-mailed by Ms P Kelly , who purchased a purpose-built apartment in Berkeley in February 2009. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in Berkeley with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease termination date was on 18 February 2082. Taking into account 56 years remaining we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.