Knotty Ash 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 gets more expensive. Most owners of residential leasehold property in Knotty Ash enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Knotty Ash you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Knotty Ash flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Knotty Ash with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Knotty Ash,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Knotty Ash valuers.
Aaron owned a conversion flat in Knotty Ash being sold with a lease of a little over sixty years left. Aaron on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2012 we were phoned by Dr W Kelly who, having purchased a one bedroom flat in Knotty Ash in February 2001. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical homes in Knotty Ash with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 12 November 2102. Considering the 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last Winter we were e-mailed by Ms L Cook , who took over the lease of a ground floor flat in Knotty Ash in November 1999. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Knotty Ash with a long lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2091. Considering the 65 years unexpired we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.