Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Keelby. Inevitably, the period of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Keelby have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give due attention before delaying your Keelby lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you increased control over the value of your Keelby leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a high value flat in Keelby being marketed with a lease of fraction over 61 years remaining. Ollie on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were called by Mrs W White , who acquired a garden flat in Keelby in May 2002. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar properties in Keelby with 100 year plus lease were worth £280,000. The average ground rent payable was £55 billed every twelve months. The lease came to a finish in 2103. Taking into account 78 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
Dr Ibrahim Gunderson completed a newly refurbished apartment in Keelby in May 2008. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar properties in Keelby with 100 year plus lease were in the region of £186,000. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish on 21 January 2083. Considering the 58 years unexpired we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus legals.