The re-sale value of a leasehold property in Knottingley depends on how long the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the eighty year threshold. Current legislation entitles Knottingley qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Knottingley can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 Knottingley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a high value flat in Knottingley on the market with a lease of just over fifty eight years unexpired. Dexter informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Ms D Morgan took over the lease of a garden flat in Knottingley in September 1998. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical premises in Knottingley with a long lease were valued around £186,000. The average ground rent payable was £65 invoiced annually. The lease concluded in 2084. Having 58 years outstanding we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.
Last Summer we were approach by Dr J Ricardo , who moved into a one bedroom flat in Knottingley in May 2010. The question was if we could approximate the price could be to extend the lease by 90 years. Identical flats in Knottingley with a long lease were worth £250,000. The average ground rent payable was £50 collected monthly. The lease ran out in 2095. Considering the 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.