The market value of a leasehold property in Keswick is impacted by how long the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed well before the 80 year mark. Statute enables Keswick qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a notional rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Keswick can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Keswick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew owned a 2 bedroom flat in Keswick being marketed with a lease of a little over 72 years outstanding. Andrew informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were approached by Mr Muhammad Norbert who, having bought a ground floor apartment in Keswick in March 2007. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar properties in Keswick with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease expired on 13 May 2076. Considering the 50 years unexpired we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.
Mrs W Cox owned a studio apartment in Keswick in June 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Keswick with 100 year plus lease were valued around £208,200. The average ground rent payable was £65 collected quarterly. The lease expired in 2087. Having 61 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of costs.