The nearer a domestic lease in Knighton gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Knighton will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Knighton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Following lengthy negotiations with the freeholder of her studio apartment in Knighton, Emily initiated the lease extension process just as the lease was coming close to the critical 80-year threshold. The transaction was concluded in July 2005. The landlord’s costs were kept to an absolute minimum.
In 2013 we were contacted by Mr O Hernández who, having moved into a ground floor flat in Knighton in January 2004. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Knighton with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 billed monthly. The lease expired in 2098. Considering the 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Ms M Bell completed a studio apartment in Knighton in June 2004. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparable homes in Knighton with a long lease were valued about £240,600. The average amount of ground rent was £60 invoiced per annum. The lease expired on 21 September 2087. Taking into account 62 years outstanding we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.