Top reasons for Kentish Town lease extension

Why you should commence your Kentish Town lease extension today:

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

As the length of the unexpired term of a Kentish Town domestic lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Kentish Town will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Kentish Town with over one hundred years left 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not grant a mortgage on a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as insufficient security.

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

The lawyers 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 conveyancer we work with provide it.

Kentish Town Lease Extension Example Cases:

Oliver, Kentish Town, North London,

Oliver owned a studio apartment in Kentish Town being marketed with a lease of a little over 59 years unexpired. Oliver informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.

Kentish Town case:

Mr and Mrs. O Thomas moved into a purpose-built flat in Kentish Town in June 2010. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Similar premises in Kentish Town with a long lease were in the region of £265,000. The average amount of ground rent was £50 invoiced annually. The lease ran out on 13 October 2099. Considering the 73 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.