Top reasons for Kentish Town lease extension

Main reasons to start your Kentish Town lease extension today:

A Kentish Town leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Kentish Town residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Kentish Town property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Kentish Town will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Kentish Town with over one hundred years unexpired 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders will not issue a mortgage with a short lease

Almost all banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will contemplate it as adequate security. Even if you don't need a mortgage, you should keep in mind that it is likely that someone wishing to purchase your property in the future might well do, so where they are not able to get a mortgage, then the market price of the property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

Why use us for your lease extension in Kentish Town?

The conveyancing solicitors that we work with undertake Kentish Town 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.

Kentish Town Lease Extension Case Studies:

Ali, Kentish Town, North London

Last year Ali, came very close to the eighty-year threshold with the lease on his first floor flat in Kentish Town. In buying his home two decades ago, the lease term was of no bearing. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Ali arranged for a lease extension just ahead of time in July. Ali and the freeholder ultimately agreed on an amount of £5,000 . If the lease had dropped lower than 80 years, the premium would have increased by a minimum £900.

Kentish Town case:

Last Spring we were e-mailed by Mr and Mrs. W Hernández , who took over the lease of a studio apartment in Kentish Town in February 1998. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar residencies in Kentish Town with a long lease were valued around £275,000. The mid-range ground rent payable was £55 billed annually. The lease terminated in 2103. Taking into account 77 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.