There is no doubt about it a leasehold property in Keswick is a wasting asset as a result of the shortening lease. Where the lease has, over 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Keswick will meet the qualifying criteria; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
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 further ninety 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Keswick,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keswick valuers.
Last Winter Hugo, started to get near to the 80-year mark with the lease on his basement flat in Keswick. In buying his property two decades ago, the lease term was of little concern. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Hugo was able to extend his lease at the eleventh hour last August. Hugo and the freeholder in the end settled on an amount of £5,500 . If he not met the deadline, the amount would have gone up by at least £1,050.
Mr and Mrs. U Moreau took over the lease of a garden apartment in Keswick in July 2001. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Keswick with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 23 November 2078. Taking into account 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of costs.
Ms Lucy Rodríguez purchased a studio flat in Keswick in August 2006. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Keswick with 100 year plus lease were valued about £225,400. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 7 May 2089. Having 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.