Why you should start your Kingsland lease extension

Main reasons to commence your Kingsland lease extension today:

A Kingsland leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Kingsland is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised well before the eighty year threshold. Statute entitles Kingsland qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

Kingsland property with a lease extension has roughly the same value as a freehold

Leasehold properties in Kingsland with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

Many banks and building societies insist on a lengthy amount of time left on any leasehold property before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should keep in mind that it is reasonable to assume that someone wanting to purchase your property in the future might well do, so where they are unable to secure a mortgage, then the financial worth of your property could suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

Retaining our service gives you increased control over the value of your Kingsland leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kingsland Lease Extension Example Cases:

Jason, Kingsland, London

Last October Jason, started to get close to the 80-year threshold with the lease on his ground floor apartment in Kingsland. Having purchased his home twenty years previously, the length of the lease was of little concern. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Jason was able to extend his lease just ahead of time in August. Jason and the freeholder via the management company in the end settled on sum of £5,500 . If the lease had gone to less than eighty years, the figure would have gone up by a minimum £900.

Kingsland case:

Mrs O Evans took over the lease of a studio apartment in Kingsland in February 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical premises in Kingsland with a long lease were valued around £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease expiry date was in 2087. Taking into account 61 years remaining we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of legals.