Unfortunately that a Knotty Ash residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Knotty Ash property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Knotty Ash will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Knotty Ash with in excess of 100 years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Knotty Ash can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Knotty Ash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli was the the leasehold proprietor of a studio apartment in Knotty Ash being marketed with a lease of just over 59 years outstanding. Eli informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Christmas we were called by Dr Imogen Walker , who acquired a studio flat in Knotty Ash in January 2000. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative properties in Knotty Ash with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 27 April 2103. Taking into account 78 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
In 2014 we were e-mailed by Mr and Mrs. Y Bernard who, having acquired a garden apartment in Knotty Ash in October 2009. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Knotty Ash with a long lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease ended on 3 July 2092. Given that there were 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus professional charges.