The closer a residential lease in Knutsford gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Knutsford will qualify for this right; however a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Knutsford with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Knutsford,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 experience and the close ties they enjoy with Knutsford valuers.
Last year Luke, started to get near to the 80-year mark with the lease on his garden apartment in Knutsford. Having purchased his flat 19 years ago, the unexpired term was of little significance. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Luke arranged for a lease extension at the eleventh hour in June. Luke and the landlord eventually settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the figure would have gone up by at least £1,025.
Last Christmas we were e-mailed by Dr Kyle Campbell , who moved into a first floor apartment in Knutsford in August 2007. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative flats in Knutsford with a long lease were in the region of £208,200. The average ground rent payable was £65 collected monthly. The lease expired on 23 March 2087. Given that there were 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
Last Christmas we were e-mailed by Dr A Morris , who moved into a basement apartment in Knutsford in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Knutsford with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish on 23 September 2098. Considering the 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.