It’s an underpublicised certainty that a Knebworth residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Knebworth property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Knebworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with procure Knebworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Dylan was the the leasehold proprietor of a 2 bedroom apartment in Knebworth being marketed with a lease of fraction over sixty years unexpired. Dylan on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were approached by Mr and Mrs. I Evans who, having purchased a one bedroom flat in Knebworth in July 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Knebworth with a long lease were worth £265,200. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out in 2092. Having 66 years outstanding we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of fees.
In 2010 we were e-mailed by Mr S Lambert who, having acquired a garden apartment in Knebworth in June 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical homes in Knebworth with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 billed quarterly. The lease finished on 23 June 2081. Given that there were 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.