There is no doubt about it a leasehold flat or house in Knaresborough is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Knaresborough will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Knaresborough,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Knaresborough valuers.
Lewis was the the leasehold proprietor of a studio apartment in Knaresborough on the market with a lease of a little over 72 years remaining. Lewis informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Dr Luca Moreau completed a studio flat in Knaresborough in October 2001. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical flats in Knaresborough with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 20 May 2094. Considering the 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Dr G Wilson owned a studio flat in Knaresborough in February 2004. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparable residencies in Knaresborough with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 billed monthly. The lease end date was on 18 September 2083. Having 58 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.