Top reasons for Holland Park lease extension

Main reasons to commence your Holland Park lease extension today:

A Holland Park lease depreciates with the years remaining on the lease.

Holland Park leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Holland Park will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Holland Park with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders will not lend with a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Holland Park lease extensions?

The lawyers that we work with undertake Holland Park 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.

Holland Park Lease Extension Case Studies:

Abigail, Holland Park, West London,

After lengthy correspondence with the landlord of her garden flat in Holland Park, Abigail commenced the lease extension process as the eighty year deadline was swiftly nearing. The legal work completed in July 2008. The freeholder’s costs were kept to an absolute minimum.

Holland Park case:

Mrs Natalie Williams acquired a recently refurbished flat in Holland Park in February 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Holland Park with a long lease were in the region of £206,200. The average amount of ground rent was £60 invoiced every twelve months. The lease expiry date was on 18 April 2080. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.