Knighton leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Knighton will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Knighton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Knighton,the lease extension lawyers 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 Knighton valuers.
In 2014 Leon, started to get near to the eighty-year mark with the lease on his studio apartment in Knighton. In buying his property 18 years previously, the lease term was of little relevance. Fortunately, he realised he would soon be paying way over the odds for a lease extension. Leon arranged for a lease extension at the eleventh hour last May. Leon and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he failed to meet the deadline, the sum would have increased by a minimum £1,100.
Dr Alex Jackson purchased a one bedroom flat in Knighton in June 2012. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparable flats in Knighton with a long lease were worth £223,400. The average amount of ground rent was £60 collected monthly. The lease concluded in 2085. Having 59 years remaining we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus fees.
Last January we were called by Mr and Mrs. F Howard , who owned a studio apartment in Knighton in September 1996. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative flats in Knighton with a long lease were worth £205,000. The average amount of ground rent was £50 billed per annum. The lease expiry date was on 15 May 2105. Taking into account 79 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.