Keighley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes 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 would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Keighley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 procuring Keighley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a studio flat in Keighley being sold with a lease of a few days over 61 years unexpired. Freddie informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. C Martínez who, having took over the lease of a newly refurbished flat in Keighley in March 2008. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Keighley with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease end date was on 28 April 2094. Taking into account 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Mr and Mrs. R Hill acquired a studio flat in Keighley in February 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative properties in Keighley with a long lease were in the region of £285,000. The average ground rent payable was £55 billed quarterly. The lease lapsed on 5 June 2105. Having 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.