The nearer a domestic lease in Knightsbridge nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Knightsbridge will qualify for this right; that being said a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Knightsbridge with more than 100 years outstanding 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 reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service will provide you better control over the value of your Knightsbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Liam owned a high value flat in Knightsbridge being sold with a lease of just over fifty eight years left. Liam informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2014 we were e-mailed by Ms U Wood who, having moved into a purpose-built flat in Knightsbridge in May 2008. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Knightsbridge with a long lease were worth £225,400. The average ground rent payable was £45 collected quarterly. The lease ended on 5 March 2089. Considering the 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 not including fees.
An example of a Lease Extension case for a Knightsbridge premises is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 13.33 years.