Why you should start your Kenley lease extension

Why you should start your Kenley lease extension today:

Increase your lease and increase your Kenley property value

With a residential leasehold premises in Kenley, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years remaining. Leasehold owners in Kenley with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has under eighty years left, under the relevant statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold premises in Kenley with in excess of 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to lend with a short lease

Banks and building societies are tightening their criteria and a meaningful number now expect flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Given that many flats in Kenley were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Get in touch with one of our Kenley lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Kenley,the lease extension solicitors 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 Kenley valuers.

Kenley Lease Extension Case Studies:

Zachary, Kenley, Surrey

Two years ago Zachary, came dangerously near to the eighty-year mark with the lease on his studio flat in Kenley. In buying his flat two decades ago, the lease term was of little importance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Zachary arranged for a lease extension at the eleventh hour in January. Zachary and the landlord in the end agreed on an amount of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,075.

Kenley case:

Last Summer we were contacted by Dr J James , who owned a studio flat in Kenley in January 2010. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Kenley with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 invoiced per annum. The lease ended on 22 May 2098. Given that there were 74 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.