Knaphill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Knaphill residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Knaphill you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Knaphill with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Knaphill can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Knaphill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo was the the leasehold owner of a conversion flat in Knaphill being sold with a lease of a few days over 72 years remaining. Leo on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Leo to invoke his statutory right. Leo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were approach by Mr and Mrs. L Ward , who acquired a purpose-built flat in Knaphill in October 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Knaphill with an extended lease were valued about £183,600. The average amount of ground rent was £65 collected quarterly. The lease finished on 6 April 2082. Having 57 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
Mrs E Hall purchased a one bedroom apartment in Knaphill in September 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable flats in Knaphill with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 collected annually. The lease terminated on 27 October 2093. Having 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.