Main reasons to commence your Kingsland lease extension

Why you should commence your Kingsland lease extension today:

Increase your lease and increase your Kingsland property value

The closer a residential lease in Kingsland gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Kingsland will meet the qualifying criteria; that being said a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Kingsland with over one hundred years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not lend on a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold property. Some will simply refuse lend at all once an unexpired lease term goes under a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than 75 years suitable security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Kingsland property.

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

The lawyers that we work with procure Kingsland 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 conveyancing solicitor we work with provide it.

Kingsland Lease Extension Example Cases:

George, Kingsland, London,

George owned a 2 bedroom flat in Kingsland on the market with a lease of a little over 59 years unexpired. George on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.

Kingsland case:

Last month we were contacted by Ms Zoe Lefebvre , who bought a one bedroom flat in Kingsland in August 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative flats in Kingsland with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 invoiced monthly. The lease expired on 1 February 2101. Given that there were 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.