Why you should commence your Kingsbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Kingsbury property value

Kingsbury leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Kingsbury residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Kingsbury you really ought to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Kingsbury leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay

Kingsbury property with a lease extension is almost the same value as a freehold

Leasehold properties in Kingsbury with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not lend with a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Engaging our service gives you increased control over the value of your Kingsbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Kingsbury Lease Extension Example Cases:

Michael, Kingsbury, North West London,

Michael owned a studio flat in Kingsbury on the market with a lease of fraction over 61 years outstanding. Michael informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and secured satisfactory deal informally and readily saleable.

Kingsbury case:

In 2011 we were approached by Mr and Mrs. N Davies who, having moved into a garden apartment in Kingsbury in June 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Similar flats in Kingsbury with 100 year plus lease were worth £275,000. The average ground rent payable was £45 invoiced annually. The lease came to a finish in 2095. Considering the 69 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.