The nearer a domestic lease in Knowle gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Knowle will qualify for this right; that being said a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Knowle with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with undertake Knowle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jonathan was the the leasehold owner of a 2 bedroom flat in Knowle on the market with a lease of just over fifty eight years left. Jonathan informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Dr Olivia Collins completed a one bedroom apartment in Knowle in April 2007. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Knowle with a long lease were in the region of £225,400. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 10 April 2090. Having 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.
Last Summer we were contacted by Mr and Mrs. G Clark , who completed a studio apartment in Knowle in April 1999. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Knowle with a long lease were worth £270,000. The average ground rent payable was £55 collected yearly. The lease ended on 14 August 2101. Taking into account 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.