The market value of Keswick leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is below than eighty years
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 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Trailing protracted negotiations with the freeholder of her studio flat in Keswick, Lily commenced the lease extension process as the eighty year threshold was quickly nearing. The legal work was finalised in August 2008. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were contacted by Ms Rachael François , who purchased a purpose-built apartment in Keswick in November 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Keswick with an extended lease were valued about £270,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 1 February 2099. Having 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last month we were approach by Mrs Georgina Gunderson , who completed a basement apartment in Keswick in November 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Keswick with a long lease were worth £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease terminated in 2079. Having 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus costs.