Why you should commence your Kenley lease extension

Top reasons for lease extension now:

A Kenley leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Kenley, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Kenley with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has fewer than 80 years left, under the current Act the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Kenley with over one hundred years left on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges warrant it.

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

Mortgage lenders have set criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once the residual lease term slips lower than a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than seventy years suitable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your Kenley home.

What makes us experts in Kenley lease extensions?

The conveyancers that we work with undertake Kenley 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 lawyer we work with provide it.

Kenley Lease Extension Case Studies:

Lucas, Kenley, Surrey

Last October Lucas, came seriously close to the 80-year threshold with the lease on his one bedroom flat in Kenley. Having purchased his flat 18 years previously, the lease term was of minimal significance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Lucas arranged for a lease extension at the eleventh hour in January. Lucas and the freeholder ultimately settled on sum of £6,000 . If he had missed the deadline, the amount would have gone up by at least £925.

Kenley case:

Dr Tommy Allen purchased a one bedroom flat in Kenley in April 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical flats in Kenley with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish on 24 September 2097. Having 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.