With a domestic leasehold property in Berrylands, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years remaining. Leasehold owners in Berrylands with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant legislation the freeholder can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Berrylands can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Berrylands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her leasehold apartment in Berrylands, Sarah initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction was concluded in September 2006. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr C Ali who, having took over the lease of a first floor flat in Berrylands in February 2011. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Similar flats in Berrylands with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2103. Having 77 years unexpired we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
An example of a Lease Extension matter before the tribunal for a Berrylands property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.