For those whose Knighton flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Knighton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Knighton,the lease extension experts that we work with will always be prepared 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 Finley, came critically close to the eighty-year threshold with the lease on his purpose- built flat in Knighton. Having purchased his flat 18 years previously, the lease term was of no concern. Thankfully, he realised he needed to take steps soon on a lease extension. Finley arranged for a lease extension just under the wire last July. Finley and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by at least £1,125.
Dr Arthur Peterson owned a one bedroom flat in Knighton in February 2008. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical homes in Knighton with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish on 20 May 2103. Having 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Mr Ethan Patel completed a one bedroom apartment in Knighton in March 1998. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Knighton with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed in 2092. Having 67 years remaining we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 not including legals.