When it comes to domestic leasehold property in Knotty Ash, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may 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 becomes disproportionately greater especially once there are fewer than eighty years left. Anyone in Knotty Ash with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years remaining, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Knotty Ash with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Yorkshire Building Society |
Using our service will provide you increased control over the value of your Knotty Ash leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Zachary, came very near to the eighty-year mark with the lease on his purpose- built apartment in Knotty Ash. In buying his property 18 years previously, the length of the lease was of minimal relevance. Luckily, he realised he needed to take steps soon on a lease extension. Zachary extended the lease at the eleventh hour last August. Zachary and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had descended lower than 80 years, the amount would have increased by at least £1,050.
In 2012 we were called by Dr Isaac Wilson who, having bought a studio flat in Knotty Ash in June 2002. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Knotty Ash with a long lease were valued around £280,000. The average ground rent payable was £45 invoiced quarterly. The lease finished on 16 April 2095. Considering the 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2014 we were approached by Mr Tyler Davis who, having completed a one bedroom apartment in Knotty Ash in March 1995. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative flats in Knotty Ash with 100 year plus lease were worth £216,000. The average ground rent payable was £60 invoiced monthly. The lease finished in 2084. Taking into account 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.