Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Knowle. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Knowle have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give careful attention before putting off your Knowle lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Knowle leasehold, as your property will be more valuable and saleable 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.
Following protracted negotiations with the landlord of her ground floor apartment in Knowle, Jodie commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was finalised in January 2014. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were contacted by Dr F Roux , who completed a ground floor apartment in Knowle in September 2004. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Knowle with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced yearly. The lease end date was on 6 June 2078. Having 53 years outstanding we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.
In 2013 we were contacted by Ms Mollie Thomas who, having took over the lease of a first floor apartment in Knowle in August 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar homes in Knowle with an extended lease were worth £220,400. The mid-range ground rent payable was £45 collected per annum. The lease expiry date was in 2089. Given that there were 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.