Knaresborough leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Knaresborough will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Knaresborough 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.
Toby was the the leasehold owner of a high value flat in Knaresborough on the market with a lease of a few days over sixty years remaining. Toby on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2012 we were phoned by Dr Samantha Rivera who, having bought a one bedroom apartment in Knaresborough in June 2009. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable flats in Knaresborough with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected per annum. The lease end date was in 2098. Having 72 years left we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including legals.
Ms Y García bought a studio flat in Knaresborough in April 2005. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparative properties in Knaresborough with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 collected every twelve months. The lease concluded in 2087. Considering the 61 years left we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus costs.