Keswick leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Keswick enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Keswick you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Keswick flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Keswick with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Keswick leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aarav owned a studio apartment in Keswick being marketed with a lease of a little over 59 years left. Aarav informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last year we were called by Mr and Mrs. W Peterson , who bought a purpose-built flat in Keswick in November 1995. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Keswick with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced annually. The lease ended in 2074. Having 50 years unexpired we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of fees.
In 2012 we were contacted by Dr Isaac Turner who, having bought a ground floor flat in Keswick in November 2010. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative premises in Keswick with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired on 9 July 2085. Given that there were 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.