Main reasons to start your Kensington lease extension

Why you should start your Kensington lease extension today:

Increase your lease and increase your Kensington property value

The nearer a residential lease in Kensington nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Kensington will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you qualify 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.

Kensington property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Kensington with more than one hundred years unexpired on the lease are often 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 buying the reversionary interest unless savings on ground rent and service charges merit it.

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

Lending institutions have specific criteria when loaning funds charged on leasehold homes. Many will simply refuse lend at all once an unexpired lease term falls lower than a certain unexpired lease term. Many Lending institutions will not regard property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Kensington home.

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

The conveyancers that we work with undertake Kensington 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.

Kensington Lease Extension Example Cases:

Stanley, Kensington, West London,

Stanley owned a high value apartment in Kensington on the market with a lease of a few days over 61 years outstanding. Stanley on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and secured satisfactory resolution informally and sell the flat.

Kensington case:

In 2013 we were contacted by Mr F Bailey who, having moved into a garden apartment in Kensington in October 1999. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative flats in Kensington with a long lease were worth £210,600. The average amount of ground rent was £45 collected yearly. The lease terminated on 25 June 2088. Having 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.