It’s a harsh certainty that a Knighton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Knighton property prices.Where your lease has approximately ninety years left, you should start thinking about 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 eighty years - otherwise a higher premium will be due. Most flat owners in Knighton will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Knighton with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Knighton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Knighton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Ollie, came dangerously close to the eighty-year threshold with the lease on his two bedroom flat in Knighton. In buying his property 18 years ago, the length of the lease was of no concern. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Ollie was able to extend his lease just in the nick of time last May. Ollie and the landlord subsequently settled on sum of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £1,100.
In 2012 we were contacted by Ms O Wilson who, having owned a basement apartment in Knighton in February 1998. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable properties in Knighton with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed annually. The lease concluded in 2097. Having 71 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
In 2011 we were called by Mrs M Pérez who, having purchased a garden flat in Knighton in October 2012. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparable flats in Knighton with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 21 November 2086. Considering the 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 plus expenses.