The only way is down when it comes to Keswick lease terms. Keswick leaseholds that have a remaining term less than than eighty years will reduce in value at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Two years ago Oscar, came precariously close to the 80-year threshold with the lease on his basement apartment in Keswick. In buying his flat two decades ago, the length of the lease was of little interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Oscar arranged for a lease extension just in the nick of time last July. Oscar and the freeholder via the managing agents in the end settled on a premium of £5,500 . If the lease had descended to less than 80 years, the premium would have increased by a minimum £1,025.
Last Christmas we were e-mailed by Ms Isabel Scott , who acquired a basement flat in Keswick in November 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical homes in Keswick with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected per annum. The lease finished in 2086. Having 60 years remaining we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including professional charges.
Last Spring we were e-mailed by Mr and Mrs. W David , who moved into a ground floor apartment in Keswick in July 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Keswick with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished in 2097. Considering the 71 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.