Top reasons for Kingsbury lease extension

Why you should start your Kingsbury lease extension today:

Increase your lease and increase your Kingsbury property value

With a domestic leasehold premises in Kingsbury, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Anyone in Kingsbury with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has fewer than 80 years left, under the relevant legislation the freeholder can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Kingsbury with in excess of one hundred years outstanding 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 purchasing the freehold unless savings on ground rent and service charges justify it.

Lending institutions will not grant a mortgage with a short lease

Most mortgage companies will not lend on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this will result in your Kingsbury property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Kingsbury lease extensions?

Regardless of whether you are a tenant or a landlord in Kingsbury,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 Kingsbury valuers.

Kingsbury Lease Extension Case Studies:

Ibrahim, Kingsbury, North West London

During the course of the last few months Ibrahim, came critically near to the eighty-year mark with the lease on his ground floor apartment in Kingsbury. Having purchased his flat 18 years previously, the unexpired term was of minimal importance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Ibrahim arranged for a lease extension just in the nick of time last April. Ibrahim and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he not met the deadline, the premium would have escalated by at least £1,100.

Kingsbury case:

Mrs K Lewis owned a first floor flat in Kingsbury in June 2008. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable premises in Kingsbury with a long lease were valued around £171,800. The mid-range amount of ground rent was £55 invoiced annually. The lease terminated in 2076. Taking into account 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.