Knaphill leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Flat owners in Knaphill will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Knaphill with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Knaphill,the lease extension experts 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 Knaphill valuers.
Arthur was the the leasehold owner of a studio flat in Knaphill on the market with a lease of a few days over 59 years unexpired. Arthur informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured satisfactory resolution informally and sell the property.
Mr Mason Brooks acquired a first floor apartment in Knaphill in October 2010. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative residencies in Knaphill with an extended lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease concluded in 2090. Taking into account 64 years remaining we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including professional charges.
Mr and Mrs. W King acquired a recently refurbished apartment in Knaphill in April 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Knaphill with an extended lease were worth £270,000. The average amount of ground rent was £55 billed monthly. The lease expired on 9 February 2101. Considering the 75 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.