The market value of a leasehold property in Knaresborough depends on how long the lease has left to run. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be concluded prior to the 80 year cut off point. Statute enables Knaresborough qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Knaresborough with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Knaresborough can be a difficult process. We recommend you procure professional help from a lawyer 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 Knaresborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb was the the leasehold owner of a 2 bedroom apartment in Knaresborough on the market with a lease of a few days over 72 years left. Caleb informally approached 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 subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2014 we were approached by Mr and Mrs. S Evans who, having moved into a ground floor flat in Knaresborough in January 2000. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Identical properties in Knaresborough with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected monthly. The lease expired on 21 June 2075. Given that there were 50 years left we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Mr Muhammad Martin completed a ground floor flat in Knaresborough in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Knaresborough with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced per annum. The lease concluded in 2095. Given that there were 70 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.