Unfortunately that a Knebworth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Knebworth property prices.Once your lease nears 85ish years, you should start considering 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 below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Knebworth will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Retaining our service will provide you increased control over the value of your Knebworth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Logan, came precariously near to the 80-year threshold with the lease on his two bedroom apartment in Knebworth. In buying his home two decades ago, the unexpired term was of minimal interest. Thankfully, he noticed he needed to take steps soon on a lease extension. Logan extended the lease just ahead of time in August. Logan and the freeholder subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have become more costly by at least £850.
Last November we were called by Mr and Mrs. M Gómez , who purchased a first floor flat in Knebworth in August 1999. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable premises in Knebworth with 100 year plus lease were worth £206,200. The average ground rent payable was £60 billed monthly. The lease termination date was in 2081. Taking into account 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Mr U Simon was assigned a lease of a basement flat in Knebworth in March 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Knebworth with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed in 2101. Having 76 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.