Why you should start your Berkeley lease extension
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Why you should commence your Berkeley lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/berkeley">Berkeley</a> property value </h4>
<p> Unfortunately that a Berkeley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Berkeley property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Berkeley will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
<h4>Banks and Building Societies may decide not to issue a mortgage on a short lease</h4> Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This will cause difficulties once you need to market or refinance your property as it will be effectively unmortgageable. You might not have an immediate intention to sell but when you do your buyer must wait a couple of years before being able to exercise the right to a an extension to the lease.
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<tr><th>Lender</th>
<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Berkeley lease extension solicitors or enfranchisement solicitors
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<p> Irrespective of whether you are a tenant or a freeholder in Berkeley,the lease extension solicitors 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.
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Berkeley Lease Extension Case Studies:
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<h5> William, Berkeley, Gloucestershire</h5>
<p> In 2014 William, came seriously close to the eighty-year threshold with the lease on his leasehold apartment in Berkeley. Having purchased his home 19 years previously, the lease term was of no importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. William arranged for a lease extension just ahead of time last July. William and the landlord eventually settled on a premium of £5,500 . If he had missed the deadline, the sum would have increased by at least £1,000.
<h5>Berkeley case:</h5>
<p> Mrs C Bennett moved into a one bedroom apartment in Berkeley in August 2001. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Berkeley with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed in 2100. Given that there were 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
<h5>Berkeley case:</h5>
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In 2012 we were approached by Mrs Grace Taylor who, having took over the lease of a basement apartment in Berkeley in June 1998. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Berkeley with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 invoiced quarterly. The lease concluded in 2080. Given that there were 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including professional charges.
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