Main reasons to commence your Berkeley lease extension

Main reasons to commence your Berkeley lease extension today:

A Berkeley lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Berkeley. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Berkeley have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due attention before delaying your Berkeley lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold premises in Berkeley with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to issue a mortgage with a short lease

Get in touch with one of our Berkeley lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake Berkeley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Berkeley Lease Extension Example Cases:

Laura, Berkeley, Gloucestershire,

Off the back of lengthy discussions with the landlord of her ground floor flat in Berkeley, Laura started the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction completed in April 2013. The freeholder’s charges were kept to an absolute minimum.

Berkeley case:

In 2011 we were called by Ms Natalie Morris who, having moved into a one bedroom flat in Berkeley in April 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Similar flats in Berkeley with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed in 2083. Given that there were 57 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.

Berkeley case:

Last November we were contacted by Ms Sophia Harris , who took over the lease of a ground floor flat in Berkeley in May 2007. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative flats in Berkeley with an extended lease were valued about £245,000. The average amount of ground rent was £50 billed annually. The lease ran out on 12 March 2094. Taking into account 68 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.