With a long leasehold property in Keswick, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Residents in Keswick with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has less than eighty years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Keswick can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 procuring Keswick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Aarav, started to get close to the eighty-year mark with the lease on his purpose- built flat in Keswick. In buying his home two decades ago, the lease term was of no significance. by good luck, he noticed he needed to take action soon on a lease extension. Aarav arranged for a lease extension just under the wire last January. Aarav and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had descended lower than eighty years, the figure would have gone up by at least £1,025.
Dr Edward Laurent owned a newly refurbished apartment in Keswick in August 2011. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Keswick with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease expiry date was on 6 August 2094. Given that there were 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Dr W Roberts completed a basement apartment in Keswick in March 2002. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative premises in Keswick with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended in 2105. Considering the 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.