Knotty Ash leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Knotty Ash will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Knotty Ash with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Knotty Ash valuers.
Last year Connor, came very near to the 80-year mark with the lease on his studio flat in Knotty Ash. In buying his flat two decades ago, the unexpired term was of no significance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Connor arranged for a lease extension just under the wire in September. Connor and the landlord who owned the flat above in the end settled on a premium of £5,500 . If he not met the deadline, the amount would have increased by a minimum £925.
Last month we were contacted by Dr K Davis , who took over the lease of a ground floor flat in Knotty Ash in October 2012. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical flats in Knotty Ash with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 27 September 2091. Having 66 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.
Dr P Ali bought a studio flat in Knotty Ash in September 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Knotty Ash with 100 year plus lease were valued about £198,800. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish on 6 January 2080. Having 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.