Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Keswick. Inevitably, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Keswick have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Keswick lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Keswick leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Theo owned a conversion flat in Keswick on the market with a lease of a few days over 61 years left. Theo informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Sian Rivera took over the lease of a basement apartment in Keswick in November 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Keswick with a long lease were worth £242,600. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2093. Having 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including expenses.
Dr S Mason purchased a purpose-built flat in Keswick in September 1996. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Keswick with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2104. Having 78 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.