As the the remaining lease term of a Knottingley domestic lease lessens so does its value and therefore the value of your property. Where the lease has, over 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Knottingley will qualify for this right; that being said a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Knottingley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience procuring Knottingley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson owned a high value flat in Knottingley on the market with a lease of a little over sixty years remaining. Jackson informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson procured expert advice and secured satisfactory resolution informally and readily saleable.
Last Autumn we were phoned by Mrs Alice Baker , who bought a one bedroom flat in Knottingley in July 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Knottingley with an extended lease were worth £264,000. The average ground rent payable was £60 collected monthly. The lease terminated on 15 May 2079. Considering the 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including legals.
Mr and Mrs. K Nguyen bought a purpose-built flat in Knottingley in February 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical homes in Knottingley with 100 year plus lease were in the region of £220,400. The average amount of ground rent was £45 invoiced yearly. The lease lapsed in 2090. Given that there were 64 years unexpired we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.