The nearer a domestic lease in Keighley nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Keighley will meet the qualifying criteria; nevertheless a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Chelsea 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Keighley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold owner of a conversion flat in Keighley being marketed with a lease of a little over 61 years unexpired. Finley on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Ms W Thompson moved into a one bedroom apartment in Keighley in March 2000. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar flats in Keighley with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 collected yearly. The lease elapsed in 2085. Having 59 years as a residual term we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.
Mr and Mrs. G Smith moved into a one bedroom apartment in Keighley in March 2008. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Keighley with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish in 2096. Given that there were 70 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.