Main reasons to commence your Keswick lease extension

Main reasons to commence your Keswick lease extension today:

Increase your lease and increase your Keswick property value

Keswick leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Keswick will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Keswick with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Banks and building societies do not like short residential leases. You are likely to encounter difficulties where you need to sell your flat in Keswick if the unexpired lease term is under the criteria set by most lenders. Different mortgage companies have different criteria but in the main they are looking for an unexpired term of at least seventy years.

Get in touch with one of our Keswick lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Keswick lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Keswick Lease Extension Case Studies:

Abigail, Keswick, Cumbria,

Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Keswick, Abigail commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was concluded in January 2005. The freeholder’s costs were negotiated to a tad over 450 pounds.

Keswick case:

Mr and Mrs. Y Jackson owned a first floor apartment in Keswick in February 2006. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar residencies in Keswick with a long lease were in the region of £255,000. The average ground rent payable was £50 collected yearly. The lease finished on 22 November 2096. Considering the 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.

Keswick case:

In 2009 we were approached by Mr F Morel who, having acquired a first floor apartment in Keswick in February 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Keswick with a long lease were worth £246,800. The average ground rent payable was £60 invoiced every twelve months. The lease ran out in 2076. Given that there were 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of costs.