Top reasons for Knighton lease extension

Top reasons for lease extension now:

A Knighton lease depreciates with the years remaining on the lease.

Knighton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Knighton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Knighton you really ought to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Knighton leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay

Knighton property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may not issue a mortgage with a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be inadequate security.

Get in touch with one of our Knighton lease extension solicitors or enfranchisement solicitors

Lease extensions in Knighton can be a difficult process. We recommend you procure professional help 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 a wealth of experience 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.

Knighton Lease Extension Example Cases:

Alex, Knighton, Powys

Half a year ago Alex, came very near to the eighty-year mark with the lease on his garden flat in Knighton. In buying his flat twenty years ago, the length of the lease was of no importance. Fortunately, he recognised he needed to take steps soon on a lease extension. Alex was able to extend his lease at the eleventh hour in March. Alex and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had dipped below 80 years, the price would have increased by a minimum £900.

Knighton case:

In 2010 we were approached by Mr and Mrs. E Laurent who, having took over the lease of a ground floor apartment in Knighton in April 2004. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Knighton with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected annually. The lease finished on 6 September 2102. Considering the 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.

Knighton case:

Mr and Mrs. O Sharif acquired a studio apartment in Knighton in September 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Knighton with a long lease were worth £257,800. The mid-range ground rent payable was £65 collected annually. The lease terminated on 15 January 2091. Taking into account 65 years as a residual term we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus legals.