There is no doubt about it a leasehold property in Keelby is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Many flat owners in Keelby will qualify for this right; however a conveyancer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Keelby with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Keelby can be a difficult process. We recommend you procure guidance from a lawyer 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 a wealth of experience dealing with Keelby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jonathan, came dangerously near to the eighty-year mark with the lease on his one bedroom apartment in Keelby. Having bought his home two decades ago, the length of the lease was of no relevance. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Jonathan was able to extend his lease just under the wire last June. Jonathan and the landlord eventually agreed on an amount of £5,000 . If the lease had dipped to less than eighty years, the amount would have become more exhorbitant by at least £850.
Ms Isabelle Clarke moved into a purpose-built apartment in Keelby in August 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Keelby with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease termination date was on 7 April 2084. Taking into account 59 years left we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Mr and Mrs. J Kelly was assigned a lease of a newly refurbished flat in Keelby in September 2006. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in Keelby with an extended lease were in the region of £255,000. The average amount of ground rent was £50 invoiced per annum. The lease terminated on 1 August 2095. Having 70 years remaining we approximated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including expenses.