As the the remaining lease term of a Keynsham domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Keynsham will meet the qualifying criteria; however a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Keynsham with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Keynsham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keynsham valuers.
After lengthy negotiations with the landlord of her ground floor apartment in Keynsham, Caitlin started the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work was concluded in November 2007. The landlord’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. C Miller who, having completed a newly refurbished apartment in Keynsham in June 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative properties in Keynsham with an extended lease were valued about £225,400. The average amount of ground rent was £45 invoiced monthly. The lease finished on 3 May 2090. Having 64 years remaining we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 plus legals.
Ms Holly Morris purchased a basement flat in Keynsham in January 2009. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Keynsham with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected annually. The lease lapsed on 26 August 2101. Taking into account 75 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.