Keynsham 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. The majority of owners of residential leasehold property in Keynsham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Keynsham you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Keynsham flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
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 all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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. |
Lease extensions in Keynsham can be a difficult process. We recommend you get guidance from a lawyer 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 Keynsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold owner of a high value apartment in Keynsham on the market with a lease of a few days over sixty years remaining. Mason on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord 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 £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. A Martinez owned a recently refurbished flat in Keynsham in April 1998. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Keynsham with a long lease were valued around £235,200. The average amount of ground rent was £45 collected yearly. The lease elapsed on 11 June 2092. Having 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Winter we were called by Mr and Mrs. F Wood , who moved into a first floor flat in Keynsham in March 2001. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Keynsham with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease terminated on 22 September 2103. Considering the 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.