With a residential leasehold property in Knightsbridge, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Residents in Knightsbridge with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has below 80 years outstanding, under the current legislation the landlord can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Knightsbridge with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Knightsbridge can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring Knightsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Toby, started to get near to the 80-year threshold with the lease on his leasehold flat in Knightsbridge. In buying his home 18 years previously, the unexpired term was of minimal bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Toby arranged for a lease extension just in the nick of time in April. Toby and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had dipped to less than eighty years, the sum would have gone up by at least £1,050.
Last Christmas we were contacted by Dr Felix Baker , who acquired a one bedroom flat in Knightsbridge in July 2009. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Knightsbridge with a long lease were valued about £260,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2098. Taking into account 72 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Knightsbridge premises is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case related to 1 flat. The unexpired lease term was 13.33 years.