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 first few years due to the depreciation being disguised by increases in the Knebworth property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee 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 will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Knebworth with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Knebworth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Knebworth valuers.
Hunter owned a studio flat in Knebworth being marketed with a lease of a little over 72 years unexpired. Hunter on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were phoned by Dr U Phillips , who was assigned a lease of a studio flat in Knebworth in November 1999. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative premises in Knebworth with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 invoiced per annum. The lease ran out on 14 April 2099. Taking into account 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. J Michel was assigned a lease of a newly refurbished flat in Knebworth in September 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Knebworth with an extended lease were worth £240,600. The average amount of ground rent was £60 billed per annum. The lease expired in 2088. Considering the 62 years remaining we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus professional charges.