When it comes to residential leasehold premises in Knebworth, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Leasehold owners in Knebworth with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than eighty years remaining, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Knebworth with in excess of 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold owner of a 2 bedroom flat in Knebworth on the market with a lease of fraction over sixty years remaining. Mason informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Last August we were called by Dr F Khan , who owned a newly refurbished apartment in Knebworth in November 1997. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar premises in Knebworth with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 13 June 2080. Considering the 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including fees.
Dr Y Allen owned a ground floor apartment in Knebworth in May 2004. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Knebworth with an extended lease were valued around £295,000. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2100. Taking into account 74 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.