The value of Keswick leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Keswick,the lease extension lawyers 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.
Teddy owned a 2 bedroom flat in Keswick being marketed with a lease of a few days over 72 years remaining. Teddy informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Dr U Richardson was assigned a lease of a ground floor flat in Keswick in July 2005. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative homes in Keswick with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 16 January 2098. Having 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Last October we were called by Mrs C Lewis , who took over the lease of a newly refurbished flat in Keswick in July 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Keswick with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 collected monthly. The lease ended on 12 April 2078. Given that there were 53 years remaining we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus fees.