Keswick leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your 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 would be well advised to check if your lease has between seventy and 90 years left. There are good reasons why a Keswick leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold properties in Keswick with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Keswick valuers.
16 months ago Elijah, started to get near to the eighty-year threshold with the lease on his studio flat in Keswick. In buying his home two decades ago, the unexpired term was of little importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Elijah was able to extend his lease just under the wire in July. Elijah and the freeholder via the management company subsequently settled on sum of £5,000 . If the lease had dipped to less than eighty years, the figure would have escalated by at least £875.
Last Autumn we were called by Mr and Mrs. C Morel , who acquired a recently refurbished apartment in Keswick in May 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative properties in Keswick with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished in 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Mr Harrison Mason completed a basement apartment in Keswick in August 2012. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Keswick with an extended lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2090. Having 65 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.