With a domestic leasehold premises in Berwick Upon Tweed, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Berwick Upon Tweed with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| TSB |
Lease extensions in Berwick Upon Tweed can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 dealing with Berwick Upon Tweed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Aarav, started to get close to the 80-year threshold with the lease on his first floor apartment in Berwick Upon Tweed. In buying his home 18 years ago, the unexpired term was of little interest. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Aarav was able to extend his lease at the eleventh hour last June. Aarav and the freeholder subsequently settled on the final figure of £5,000 . If the lease had slid lower than 80 years, the premium would have become more costly by a minimum £900.
In 2010 we were contacted by Mrs Aimee Pérez who, having purchased a purpose-built apartment in Berwick Upon Tweed in August 2004. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable flats in Berwick Upon Tweed with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2096. Given that there were 70 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
In 2014 we were e-mailed by Dr Y Turner who, having owned a recently refurbished flat in Berwick Upon Tweed in July 2011. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable premises in Berwick Upon Tweed with a long lease were valued about £218,400. The average amount of ground rent was £60 collected quarterly. The lease lapsed on 11 June 2085. Given that there were 59 years outstanding we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of expenses.