The only way is down when it comes to Keyworth lease terms. Keyworth flats that have a residual term less than than 80 years will drop in market price even faster, and the cost of extending your lease will go up.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Keyworth,the lease extension solicitors 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 Keyworth valuers.
In 2014 Gabriel, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Keyworth. In buying his property two decades ago, the lease term was of minimal importance. Thankfully, he realised he would imminently be paying an inflated amount for a lease extension. Gabriel was able to extend his lease just ahead of time in March. Gabriel and the landlord ultimately settled on a premium of £5,000 . If the lease had descended below 80 years, the premium would have gone up by at least £1,025.
In 2014 we were phoned by Mr W Wilson who, having took over the lease of a one bedroom flat in Keyworth in April 2002. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Keyworth with an extended lease were in the region of £198,800. The average ground rent payable was £55 collected per annum. The lease terminated on 27 May 2080. Given that there were 55 years unexpired we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.
In 2013 we were approached by Mr and Mrs. W Carter who, having purchased a first floor apartment in Keyworth in August 1999. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical homes in Keyworth with an extended lease were in the region of £295,000. The average ground rent payable was £50 invoiced every twelve months. The lease expiry date was on 28 January 2100. Taking into account 75 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.