Why you should commence your Kingston upon Thames lease extension

Main reasons to start your Kingston upon Thames lease extension today:

A Kingston upon Thames lease depreciates with the years remaining on the lease.

It’s a harsh certainty that a Kingston upon Thames residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Kingston upon Thames property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. The majority of flat owners in Kingston upon Thames will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease is almost the same value as a freehold

Leasehold residencies in Kingston upon Thames 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This will cause difficulties when you wish to market or refinance your property as it will be practically unmortgageable. Even though you may have no immediate intention to sell but when you do your purchaser will have to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Kingston upon Thames lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Kingston upon Thames,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingston upon Thames valuers.

Kingston upon Thames Lease Extension Case Studies:

Kai, Kingston upon Thames, South West London,

Kai was the the leasehold owner of a high value apartment in Kingston upon Thames on the market with a lease of a little over fifty eight years unexpired. Kai 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 extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Kingston upon Thames case:

Last month we were contacted by Dr F Fournier , who took over the lease of a one bedroom flat in Kingston upon Thames in August 2009. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative properties in Kingston upon Thames with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish in 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.