Top reasons for Knutsford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Knutsford property value

Unfortunately that a Knutsford residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Knutsford property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Knutsford will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Knutsford with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not loan monies with a short lease

Many banks and building societies will not lend on a lease with under 70 years unexpired - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Knutsford property becoming difficult to sell or remortgage.

Get in touch with one of our Knutsford lease extension solicitors or enfranchisement solicitors

The conveyancers 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 conveyancing solicitor we work with provide it.

Knutsford Lease Extension Example Cases:

Lydia, Knutsford, Cheshire,

Trailing lengthy negotiations with the landlord of her studio apartment in Knutsford, Lydia started the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction was finalised in February 2014. The freeholder’s fees were negotiated to a tad over 500 pounds.

Knutsford case:

Mr C Young took over the lease of a garden apartment in Knutsford in March 2011. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Knutsford with a long lease were valued about £242,600. The mid-range ground rent payable was £45 billed annually. The lease finished on 12 June 2093. Given that there were 67 years left we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.

Knutsford case:

Mrs Courtney Thompson completed a first floor flat in Knutsford in September 2001. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Knutsford with an extended lease were worth £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2104. Taking into account 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.