Legacy Keyed Handle Set, 3-15/16" (1-1/8" to 2-1/2")

Hi there, thanks for writing in. It looks to me like you have our 82-035 handle set. This can be converted into a keyed handle with our 82-315. Our handles don't come with mortise locks, but yours looks similar to our 82-218, though I would confirm that by comparing the distance between the installation holes. Let me know what you think! 

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I apologize for this inconvenience. The 82-086 won't work as a replacement because the thumb turn lever is offset, whereas yours is centered. However, take a look at our 82-030. I think this is a viable alternative, and it can be keyed with our 82-310. Let me know what you think!

Yep, the 82-030 handle set and 82-218 mortise are fully compatible. The 82-030 is actually the same as the 82-086, it's just a slightly different style and lacks a key lock. As you said, the 82-310 will work perfectly fine for it.

That is exactly how you knock out those punch circles, yes. As for whether it needs to be the center hole or not, I can't answer that. You need to see how those punch circles align with where your key lock is meant to install and knock out whichever one is needed.