The market value of Knebworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than 80 years
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Using our service gives you increased control over the value of your Knebworth leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her one bedroom flat in Knebworth, Paige commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was finalised in May 2014. The freeholder’s charges were negotiated to below 600 pounds.
In 2012 we were called by Dr R Wilson who, having acquired a one bedroom apartment in Knebworth in August 2002. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparable homes in Knebworth with 100 year plus lease were worth £248,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease finished in 2089. Taking into account 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including costs.
Last Autumn we were phoned by Ms L André , who completed a garden flat in Knebworth in May 2003. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable flats in Knebworth with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 billed quarterly. The lease finished in 2078. Given that there were 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.