Main reasons to commence your South Kensington lease extension

Top reasons for lease extension now:

Increase your lease and increase your South Kensington property value

It’s an underpublicised truth that a South Kensington residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the South Kensington property market.Once your lease nears 85ish years, you should start thinking about 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 premium will be due. Most leasehold owners in South Kensington will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease is almost the same value as a freehold

Leasehold premises in South Kensington with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not loan monies with a short lease

Banks and building societies do not like short residential leases. You most probably encounter difficulties where you wish to sell your flat in South Kensington if the remaining term of your lease is under the criteria set by most banks and building societies. Different mortgage companies have different requirements but generally theyrequire an unexpired term of at least seventy years.

What makes us experts in South Kensington lease extensions?

Engaging our service gives you enhanced control over the value of your South Kensington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

South Kensington Lease Extension Case Studies:

Freya, South Kensington, West London,

Trailing unsuccessful negotiations with the landlord of her one bedroom apartment in South Kensington, Freya started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was finalised in October 2011. The landlord’s charges were negotiated to slightly above 650 GBP.

South Kensington case:

Last Summer we were called by Ms V Gray , who took over the lease of a basement flat in South Kensington in October 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in South Kensington with 100 year plus lease were in the region of £248,000. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was on 22 April 2089. Considering the 63 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including fees.