Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Knighton. Inevitably, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Knighton have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before putting off your Knighton lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Knighton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
Using 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 decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alex owned a conversion apartment in Knighton being sold with a lease of a little over fifty eight years left. Alex on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last month we were approach by Mrs I Brooks , who bought a one bedroom apartment in Knighton in November 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Knighton with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed in 2090. Having 64 years remaining we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.
In 2011 we were approached by Dr Natalie Martin who, having was assigned a lease of a one bedroom apartment in Knighton in May 2008. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Knighton with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed in 2079. Considering the 53 years remaining we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.