The market value of Knaphill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than 80 years
Leasehold premises in Knaphill with in excess of one hundred years remaining 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 buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 gives you increased control over the value of your Knaphill leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her two bedroom flat in Knaphill, Chloe started the lease extension process as the 80 year mark was fast advancing. The lease extension completed in September 2014. The landlord’s charges were restricted to less than 650 pounds.
Mr and Mrs. W Clark moved into a purpose-built apartment in Knaphill in July 2012. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Knaphill with a long lease were in the region of £235,200. The average amount of ground rent was £45 collected monthly. The lease ran out on 22 June 2092. Considering the 66 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
Dr E Hall bought a basement flat in Knaphill in May 1995. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Knaphill with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease concluded on 16 March 2103. Given that there were 77 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.