The only way is down when it comes to Keelby lease terms. Keelby flats that have a lease term lower than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
It is conventional wisdom that a residential leasehold with over 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 premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Keelby,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Keelby valuers.
Omar owned a studio apartment in Keelby being sold with a lease of fraction over sixty years remaining. Omar on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Summer we were approach by Dr Kayleigh Lambert , who owned a ground floor flat in Keelby in July 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative residencies in Keelby with an extended lease were worth £208,200. The average amount of ground rent was £65 invoiced annually. The lease ended in 2087. Given that there were 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.
In 2012 we were phoned by Mr and Mrs. L Nelson who, having completed a one bedroom flat in Keelby in September 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar homes in Keelby with a long lease were worth £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished in 2098. Given that there were 72 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.