Top reasons for Knottingley lease extension

Why you should start your Knottingley lease extension today:

A Knottingley lease depreciates with the years remaining on the lease.

When it comes to long leasehold property in Knottingley, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Knottingley with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has below 80 years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies will not finance a property on a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are considered to be inadequate for lending purposes.

Get in touch with one of our Knottingley lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Knottingley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Knottingley valuers.

Knottingley Lease Extension Example Cases:

George, Knottingley, West Yorkshire,

George was the the leasehold proprietor of a 2 bedroom apartment in Knottingley on the market with a lease of a little over 59 years remaining. George on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Knottingley case:

In 2011 we were called by Mrs Sian Cox who, having bought a first floor apartment in Knottingley in June 2001. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparative residencies in Knottingley with an extended lease were worth £227,800. The average ground rent payable was £45 collected yearly. The lease terminated on 8 March 2091. Taking into account 65 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.

Knottingley case:

Last Spring we were approach by Ms V Roux , who completed a one bedroom flat in Knottingley in June 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Knottingley with an extended lease were in the region of £275,000. The average ground rent payable was £55 invoiced yearly. The lease concluded on 4 September 2102. Considering the 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.