With a long leasehold premises in Knottingley, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Knottingley with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has fewer than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Knottingley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Henry, started to get close to the eighty-year mark with the lease on his garden apartment in Knottingley. Having purchased his property 19 years ago, the length of the lease was of minimal significance. Fortunately, he noticed he needed to take action soon on a lease extension. Henry extended the lease just under the wire last April. Henry and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had fallen below eighty years, the price would have increased by at least £850.
In 2014 we were e-mailed by Mr and Mrs. L González who, having took over the lease of a ground floor flat in Knottingley in September 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Similar residencies in Knottingley with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2077. Having 51 years remaining we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.
Mr and Mrs. O Simon moved into a basement apartment in Knottingley in January 2006. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative flats in Knottingley with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish on 1 June 2088. Having 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.