Top reasons for Knutsford lease extension

Why you should start your Knutsford lease extension today:

A Knutsford leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Knutsford is impacted by how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed in advance of the 80 year cut off point. Current legislation entitles Knutsford qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.

Lenders may not lend with a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years remaining at the end of the mortgage. As many flats in Knutsford were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

What makes us experts in Knutsford lease extensions?

The conveyancing solicitors that we work with handle Knutsford 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 lawyer we work with provide it.

Knutsford Lease Extension Example Cases:

Tyler, Knutsford, Cheshire,

Tyler owned a high value flat in Knutsford being sold with a lease of a few days over 59 years outstanding. Tyler informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

Knutsford case:

In 2009 we were contacted by Mr Archie Jackson who, having moved into a one bedroom flat in Knutsford in March 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Knutsford with a long lease were worth £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2082. Taking into account 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including legals.

Knutsford case:

Last Spring we were phoned by Mr F André , who owned a purpose-built flat in Knutsford in April 2010. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar residencies in Knutsford with an extended lease were valued around £242,600. The average ground rent payable was £45 invoiced every twelve months. The lease concluded on 25 May 2093. Considering the 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.