Keswick residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Virgin |
The conveyancers that we work with procure Keswick lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Christmas Mason, came very close to the 80-year threshold with the lease on his basement flat in Keswick. In buying his property 18 years previously, the length of the lease was of minimal importance. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Mason was able to extend his lease at the eleventh hour in January. Mason and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £1,050.
Mrs Paige André purchased a newly refurbished apartment in Keswick in August 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Keswick with a long lease were valued about £280,000. The average ground rent payable was £55 collected per annum. The lease terminated in 2104. Considering the 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
Mr and Mrs. P Mason acquired a recently refurbished flat in Keswick in August 2005. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Keswick with an extended lease were in the region of £191,000. The average ground rent payable was £65 billed every twelve months. The lease expired in 2084. Taking into account 58 years left we calculated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus expenses.