As the length of the unexpired term of a Knebworth domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Knebworth will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Knebworth with in excess of one hundred years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Knebworth can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 dealing with Knebworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua owned a 2 bedroom apartment in Knebworth being marketed with a lease of a little over 59 years unexpired. Joshua on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last year we were approach by Dr Catherine Phillips , who moved into a one bedroom flat in Knebworth in July 2010. The question was if we could estimate the price could be to prolong the lease by 90 years. Similar properties in Knebworth with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 invoiced per annum. The lease expired on 24 October 2093. Having 68 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
In 2009 we were called by Mr F Moore who, having completed a purpose-built flat in Knebworth in May 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Knebworth with an extended lease were valued about £208,600. The average ground rent payable was £60 collected monthly. The lease ran out in 2082. Taking into account 57 years left we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.