Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Keelby. Inevitably, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Keelby have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give due attention before delaying your Keelby lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Keelby with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Keelby can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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.
In 2014 John, came very near to the eighty-year threshold with the lease on his leasehold flat in Keelby. In buying his home two decades ago, the length of the lease was of little bearing. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. John arranged for a lease extension at the eleventh hour last September. John and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had slipped below 80 years, the price would have become more exhorbitant by at least £925.
In 2013 we were e-mailed by Mr and Mrs. A López who, having owned a first floor flat in Keelby in October 1996. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative residencies in Keelby with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2079. Taking into account 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of fees.
In 2011 we were contacted by Dr Alex Gray who, having owned a garden apartment in Keelby in April 2012. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical flats in Keelby with an extended lease were worth £227,800. The average amount of ground rent was £45 billed per annum. The lease lapsed in 2090. Considering the 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.