The only way is down when it comes to Knighton lease terms. Knighton leaseholds that have a residual term fewer than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold residencies in Knighton with in excess of 100 years outstanding 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 premises. In such situations 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
The conveyancers that we work with handle Knighton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Dexter owned a conversion apartment in Knighton being marketed with a lease of fraction over sixty years left. Dexter on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured satisfactory deal informally and readily saleable.
Last Autumn we were phoned by Dr Oliver White , who was assigned a lease of a ground floor apartment in Knighton in November 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable flats in Knighton with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed every twelve months. The lease elapsed on 11 June 2079. Having 54 years unexpired we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 not including professional charges.
In 2013 we were contacted by Mrs Lauren Laurent who, having moved into a ground floor flat in Knighton in June 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Knighton with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected annually. The lease expired in 2099. Considering the 74 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.