Unfortunately that a Keynsham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Keynsham property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Keynsham will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Keynsham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide 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.
Noah was the the leasehold owner of a conversion flat in Keynsham being sold with a lease of a little over fifty eight years unexpired. Noah on an informal basis spoke with his freeholder being a well known local-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 subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were phoned by Ms Freya Alexander , who was assigned a lease of a one bedroom flat in Keynsham in October 2012. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical premises in Keynsham with a long lease were valued about £246,800. The average ground rent payable was £60 billed annually. The lease expired in 2075. Taking into account 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of legals.
Last month we were called by Dr B Fournier , who took over the lease of a purpose-built apartment in Keynsham in July 2001. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable properties in Keynsham with an extended lease were in the region of £208,200. The average ground rent payable was £65 billed annually. The lease ended in 2086. Taking into account 61 years outstanding we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including costs.