The re-sale value of a leasehold property in Knutsford depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised ahead of the 80 year threshold. Statute enables Knutsford qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Knutsford with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Knutsford can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 a wealth of experience 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.
Benjamin owned a 2 bedroom flat in Knutsford being sold with a lease of fraction over fifty eight years outstanding. Benjamin on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were e-mailed by Dr Rory Leroy , who took over the lease of a first floor flat in Knutsford in June 1997. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Knutsford with an extended lease were worth £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished in 2101. Considering the 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Last June we were phoned by Mr Archie Nelson , who was assigned a lease of a one bedroom flat in Knutsford in March 2010. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Knutsford with a long lease were worth £183,600. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish on 21 January 2081. Given that there were 57 years remaining we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.