Keighley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Keighley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Keighley you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Engaging our service gives you enhanced control over the value of your Keighley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold owner of a conversion flat in Keighley being marketed with a lease of just over fifty eight years remaining. Harry on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and secured satisfactory deal informally and readily saleable.
Last Winter we were approach by Mrs A Harris , who bought a purpose-built flat in Keighley in April 2006. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative properties in Keighley with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease concluded on 21 May 2101. Taking into account 76 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Spring we were approach by Dr Seth Cox , who took over the lease of a ground floor flat in Keighley in April 2000. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative residencies in Keighley with a long lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease elapsed on 6 May 2081. Given that there were 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of expenses.