The market value of Keyworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Keyworth can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Keyworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a high value flat in Keyworth on the market with a lease of a little over sixty years remaining. Aarav on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Dr Toby Bell who, having completed a basement flat in Keyworth in September 2005. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in Keyworth with a long lease were worth £216,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed on 8 November 2084. Given that there were 58 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Dr J Laurent was assigned a lease of a purpose-built flat in Keyworth in November 2000. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Similar residencies in Keyworth with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2104. Having 78 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.