Knighton leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Knighton will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Knighton with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service gives you enhanced control over the value of your Knighton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Charlie, came dangerously close to the 80-year threshold with the lease on his first floor flat in Knighton. Having bought his home two decades ago, the length of the lease was of no concern. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Charlie extended the lease just under the wire in January. Charlie and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had descended to less than eighty years, the amount would have increased by a minimum £1,075.
Mr and Mrs. E Cooper moved into a first floor apartment in Knighton in May 2004. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Knighton with 100 year plus lease were worth £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease expiry date was on 24 March 2078. Considering the 52 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
In 2010 we were phoned by Mrs Natasha Simon who, having acquired a first floor apartment in Knighton in November 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Knighton with 100 year plus lease were worth £290,000. The average ground rent payable was £45 invoiced yearly. The lease came to a finish in 2098. Having 72 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.