Main reasons to commence your South Kensington lease extension

Top reasons for lease extension now:

A South Kensington leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised certainty that a South Kensington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the South Kensington property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in South Kensington will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

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

Leasehold residencies in South Kensington with over one hundred years unexpired 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Why use us for your lease extension in South Kensington?

The conveyancers that we work with procure South Kensington 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 lawyer we work with provide it.

South Kensington Lease Extension Case Summaries:

Millie, South Kensington, West London,

Subsequent to unsuccessful negotiations with the freeholder of her purpose-built flat in South Kensington, Millie commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction completed in October 2006. The landlord’s fees were restricted to under 450 GBP.

South Kensington case:

Mrs Nicole Kelly acquired a purpose-built flat in South Kensington in March 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical premises in South Kensington with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 collected per annum. The lease expired in 2085. Given that there were 59 years remaining we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 plus costs.