Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Keswick. Clearly, the term of lease left shortens over time. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Keswick have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due consideration before delaying your Keswick lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Keswick with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Keswick leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Muhammad, came precariously near to the eighty-year threshold with the lease on his purpose- built flat in Keswick. Having bought his flat two decades ago, the length of the lease was of minimal importance. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Muhammad arranged for a lease extension just under the wire last March. Muhammad and the landlord who owned the flat above eventually settled on sum of £5,000 . If the lease had dropped lower than 80 years, the price would have escalated by at least £1,100.
Last November we were e-mailed by Mrs C Sánchez , who acquired a first floor apartment in Keswick in May 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative flats in Keswick with an extended lease were worth £191,000. The mid-range amount of ground rent was £65 billed yearly. The lease ended in 2084. Given that there were 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including fees.
Mr and Mrs. Y Torres owned a recently refurbished flat in Keswick in September 1997. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Keswick with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced yearly. The lease ran out on 23 March 2095. Given that there were 69 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.