As the length of the unexpired term of a Knightsbridge domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Knightsbridge will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Knightsbridge with more than one hundred years unexpired 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Knightsbridge,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Knightsbridge valuers.
During the course of the last few months Michael, started to get close to the eighty-year mark with the lease on his basement apartment in Knightsbridge. In buying his home 19 years previously, the length of the lease was of minimal relevance. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Michael was able to extend his lease just under the wire in April. Michael and the landlord subsequently agreed on an amount of £5,500 . If the lease had dipped below eighty years, the figure would have gone up by at least £1,025.
Mr Noah Phillips moved into a garden flat in Knightsbridge in September 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Knightsbridge with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded on 2 July 2094. Having 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired lease term was 13.33 years.