Knutsford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Knutsford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Knutsford you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Knutsford can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Knutsford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her leasehold flat in Knutsford, Alicia started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work was finalised in September 2015. The landlord’s fees were restricted to slightly above five hundred GBP.
Mr and Mrs. B Wilson purchased a purpose-built flat in Knutsford in January 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Knutsford with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease ran out in 2103. Taking into account 78 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Ms J Norbert completed a basement apartment in Knutsford in March 1996. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical premises in Knutsford with an extended lease were valued around £191,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 18 September 2083. Taking into account 58 years remaining we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus costs.