Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Keswick. Inevitably, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Keswick have the right to extend the lease for a further 90 years under statute. Please give due consideration before putting off your Keswick lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
Lender | Requirement |
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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. |
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. |
Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Keswick can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Keswick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the freeholder of her purpose-built apartment in Keswick, Abigail initiated the lease extension process as the 80 year mark was rapidly coming. The transaction was finalised in July 2005. The freeholder’s fees were restricted to approximately 450 GBP.
In 2013 we were e-mailed by Mr A Cox who, having moved into a one bedroom apartment in Keswick in January 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Keswick with an extended lease were in the region of £191,000. The average amount of ground rent was £65 invoiced yearly. The lease expired on 5 September 2082. Given that there were 58 years outstanding we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
Mr and Mrs. K Díaz moved into a first floor flat in Keswick in January 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Keswick with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 13 September 2093. Given that there were 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.