Knowle leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Knowle tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Knowle you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 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 |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Knowle,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 Knowle valuers.
After protracted discussions with the freeholder of her ground floor flat in Knowle, Melissa commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in June 2013. The freeholder’s costs were restricted to about 500 GBP.
Last Spring we were phoned by Mr C David , who was assigned a lease of a recently refurbished flat in Knowle in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Knowle with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 19 May 2102. Considering the 76 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
Mr Riley Howard was assigned a lease of a newly refurbished flat in Knowle in January 1997. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Knowle with 100 year plus lease were worth £181,200. The average ground rent payable was £65 invoiced monthly. The lease elapsed on 4 March 2082. Given that there were 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus legals.