Why you should start your Keyworth lease extension

Top reasons for lease extension now:

A Keyworth lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Keyworth depends on how long the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised ahead of the 80 year threshold. Current legislation enables Keyworth qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Keyworth property with a lease extension is almost the same value as a freehold

Leasehold premises in Keyworth with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to issue a mortgage with a short lease

Banks and building societies are tightening their criteria and many now want flats to have at least sixty if not seventy years left once the mortgage has expired. Given that a number of flats in Keyworth were built in the fifties, sixties and seventies as a result many now require lease extensions if they wish to get a mortgage.

What makes us experts in Keyworth lease extensions?

Irrespective of whether you are a tenant or a landlord in Keyworth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keyworth valuers.

Keyworth Lease Extension Example Cases:

Harvey, Keyworth, Nottinghamshire

Last October Harvey, started to get near to the eighty-year mark with the lease on his leasehold flat in Keyworth. In buying his flat two decades ago, the unexpired term was of minimal bearing. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Harvey arranged for a lease extension just in the nick of time in July. Harvey and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had slipped to less than 80 years, the figure would have escalated by a minimum £1,100.

Keyworth case:

Last June we were approach by Ms Nicole Wood , who moved into a basement flat in Keyworth in September 1997. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable homes in Keyworth with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 28 January 2103. Having 77 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.

Keyworth case:

In 2014 we were contacted by Ms Holly Hall who, having purchased a one bedroom flat in Keyworth in March 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical premises in Keyworth with a long lease were valued about £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed in 2092. Having 66 years remaining we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of costs.