Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Keighley. Inevitably, the length of lease left reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Keighley have the right to extend the lease for a further 90 years in accordance with statute. Do give careful consideration before delaying your Keighley lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Keighley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keighley valuers.
Michael was the the leasehold owner of a studio flat in Keighley being sold with a lease of a few days over 61 years outstanding. Michael informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Dr O Lee owned a basement flat in Keighley in November 2002. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Keighley with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished on 11 July 2097. Having 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last Christmas we were e-mailed by Mr and Mrs. E Clark , who took over the lease of a studio apartment in Keighley in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Keighley with an extended lease were worth £254,200. The average ground rent payable was £60 invoiced annually. The lease ended on 4 May 2077. Taking into account 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including professional charges.