Knightsbridge leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Knightsbridge will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Knightsbridge with over one hundred years left 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Knightsbridge can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Knightsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the landlord of her studio flat in Knightsbridge, Elizabeth initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension completed in August 2009. The freeholder’s charges were kept to an absolute minimum.
Ms V Clarke purchased a purpose-built flat in Knightsbridge in April 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Knightsbridge with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 4 March 2105. Having 79 years outstanding we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
An example of a Lease Extension decision for a Knightsbridge residence 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 affected 1 flat. The remaining number of years on the lease was 13.33 years.