The market value of a leasehold property in Keyworth is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded ahead of the 80 year threshold. Current legislation entitles Keyworth qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Keyworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Austin owned a high value apartment in Keyworth on the market with a lease of a few days over 61 years unexpired. Austin on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Ms Daisy Jones took over the lease of a first floor flat in Keyworth in August 2001. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable properties in Keyworth with an extended lease were in the region of £225,800. The average ground rent payable was £60 billed annually. The lease finished on 11 May 2086. Taking into account 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.
Mr and Mrs. W Nguyen was assigned a lease of a purpose-built flat in Keyworth in August 2010. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparable properties in Keyworth with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2106. Given that there were 80 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.