The closer a residential lease in Keelby gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Keelby will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Keelby,the lease extension lawyers that we work with will always be willing 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.
Eliot was the the leasehold owner of a studio flat in Keelby being sold with a lease of just over 59 years outstanding. Eliot informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last Autumn we were contacted by Mrs Rachel Vincent , who moved into a basement flat in Keelby in June 2010. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Keelby with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 17 October 2091. Given that there were 66 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last month we were e-mailed by Dr Jacob Ward , who purchased a one bedroom flat in Keelby in April 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Keelby with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease expired on 20 March 2102. Given that there were 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.