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 not fully appreciated in the early years due to the reduction being disguised by increases in the Knebworth property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of leasehold 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 timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Daniel was the the leasehold owner of a studio apartment in Knebworth on the market with a lease of a little over fifty eight years outstanding. Daniel on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were approached by Mr and Mrs. M Morgan who, having bought a first floor apartment in Knebworth in June 2008. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Knebworth with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed in 2077. Having 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
In 2010 we were phoned by Mr and Mrs. E Anderson who, having was assigned a lease of a newly refurbished apartment in Knebworth in November 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Knebworth with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected annually. The lease finished on 16 October 2097. Taking into account 71 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.