Knottingley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Knottingley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Knottingley you should check if your lease has between 70 and 90 years remaining. There are good reasons why a Knottingley flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Knottingley can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 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.
Subsequent to unsuccessful correspondence with the freeholder of her studio apartment in Knottingley, Aimee started the lease extension process as the 80 year deadline was fast nearing. The transaction was finalised in November 2014. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were phoned by Dr Adam Morris who, having completed a one bedroom apartment in Knottingley in August 2000. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Knottingley with a long lease were in the region of £176,200. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2081. Considering the 56 years as a residual term we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.
In 2009 we were contacted by Mr and Mrs. K Leroy who, having took over the lease of a one bedroom flat in Knottingley in July 2000. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Knottingley with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 billed monthly. The lease elapsed on 18 March 2092. Considering the 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.