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 your lease gets 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 really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
Engaging our service will provide you increased control over the value of your Keswick leasehold, as your property will be more valuable and saleable 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.
Teddy was the the leasehold proprietor of a 2 bedroom flat in Keswick being marketed with a lease of just over 72 years remaining. Teddy on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were approach by Mr and Mrs. R Smith , who purchased a one bedroom apartment in Keswick in July 2002. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative premises in Keswick with a long lease were worth £245,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished on 9 April 2089. Given that there were 68 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
In 2009 we were called by Ms Ellen Simon who, having owned a one bedroom flat in Keswick in May 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Keswick with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 collected annually. The lease expired on 11 June 2100. Having 79 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.