The re-sale value of a leasehold property in Keswick is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that all matters can be finalised well before the eighty year cut off point. Current legislation entitles Keswick qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to determine the premium 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 approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Keswick,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keswick valuers.
After lengthy correspondence with the landlord of her one bedroom apartment in Keswick, Katie initiated the lease extension process as the 80 year mark was swiftly approaching. The lease extension was finalised in April 2010. The freeholder’s costs were kept to an absolute minimum.
Dr D Roux acquired a ground floor flat in Keswick in July 1999. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Keswick with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced yearly. The lease expired on 28 June 2082. Taking into account 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus legals.
In 2012 we were approached by Mr P Reed who, having moved into a garden flat in Keswick in January 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Keswick with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2093. Having 67 years remaining we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.