Knaresborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Knaresborough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Knaresborough you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same 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 decades to come.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
James owned a conversion apartment in Knaresborough being sold with a lease of a few days over fifty eight years left. James informally approached his landlord 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 on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were James to invoke his statutory right. James obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. N Howard was assigned a lease of a one bedroom flat in Knaresborough in January 1999. The question was if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Knaresborough with an extended lease were worth £198,800. The average amount of ground rent was £55 billed per annum. The lease termination date was on 1 February 2081. Given that there were 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.
Last Spring we were contacted by Mr and Mrs. G Flores , who completed a recently refurbished apartment in Knaresborough in June 1996. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable flats in Knaresborough with a long lease were worth £300,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish in 2101. Considering the 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.