It’s an underpublicised truth that a Knaresborough residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Knaresborough property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. The majority of flat owners in Knaresborough will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| National Westminster Bank | |
| Santander | |
| Virgin |
Retaining our service gives you increased control over the value of your Knaresborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Seth, started to get near to the eighty-year mark with the lease on his leasehold flat in Knaresborough. In buying his property two decades ago, the length of the lease was of minimal importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Seth was able to extend his lease at the eleventh hour last May. Seth and the landlord subsequently agreed on an amount of £6,000 . If the lease had slipped lower than eighty years, the premium would have escalated by a minimum £925.
Last Autumn we were called by Mrs Millie Davis , who acquired a first floor apartment in Knaresborough in November 2007. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Knaresborough with an extended lease were valued about £230,800. The mid-range ground rent payable was £60 billed yearly. The lease expired in 2086. Given that there were 60 years left we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 not including professional charges.
Last Summer we were phoned by Mrs Chloe Dupont , who owned a studio flat in Knaresborough in June 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Knaresborough with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed yearly. The lease lapsed on 8 May 2106. Having 80 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.