Keswick leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Keswick will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| TSB | |
| Royal Bank of Scotland |
Retaining our service gives you enhanced control over the value of your Keswick leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Oscar, came seriously close to the 80-year threshold with the lease on his ground floor flat in Keswick. In buying his property two decades ago, the length of the lease was of minimal concern. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Oscar arranged for a lease extension just ahead of time last January. Oscar and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he not met the deadline, the figure would have increased by at least £975.
In 2013 we were contacted by Mr and Mrs. O Peterson who, having moved into a first floor apartment in Keswick in May 2007. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar properties in Keswick with a long lease were valued around £254,200. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 7 January 2077. Considering the 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including fees.
In 2013 we were approached by Mr and Mrs. T Martin who, having was assigned a lease of a first floor apartment in Keswick in September 2010. The question was if we could estimate the price would be for a ninety year lease extension. Identical premises in Keswick with a long lease were worth £210,600. The average ground rent payable was £45 billed every twelve months. The lease elapsed in 2088. Given that there were 62 years outstanding we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.