Why you should commence your Kentish Town lease extension

Top reasons for lease extension now:

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

Kentish Town leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Kentish Town residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kentish Town you really ought to check if your lease has between 70 and ninety years remaining. There are good reasons why a Kentish Town flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in Kentish Town with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

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

Almost all mortgage companies insist on a lengthy amount of time remaining on any leasehold residence before they will consider lending on it. Even if you don't require a mortgage, you should be aware that it is likely that someone intending to buy your property in the future might well do, so if they are not able to get a mortgage, then the market price of the property could be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

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

The lawyers that we work with procure 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 Example Cases:

Callum, Kentish Town, North London,

Callum was the the leasehold owner of a conversion apartment in Kentish Town being sold with a lease of a few days over 61 years outstanding. Callum on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Kentish Town case:

Dr Stanley Wood moved into a one bedroom apartment in Kentish Town in August 2007. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Kentish Town with a long lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease expiry date was on 1 June 2076. Given that there were 50 years left we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including expenses.