Top reasons for Holland Park lease extension

Top reasons for lease extension now:

A Holland Park lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Holland Park residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Holland Park property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Holland Park will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property on a short lease

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

The lawyers that we work with procure Holland Park 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.

Holland Park Lease Extension Example Cases:

Finley, Holland Park, West London

In 2014 Finley, came precariously close to the 80-year threshold with the lease on his purpose- built apartment in Holland Park. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Finley was able to extend his lease just in the nick of time last August. Finley and the freeholder via the management company subsequently settled on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £850.

Holland Park case:

In 2011 we were contacted by Mr Ryan Bennett who, having acquired a ground floor flat in Holland Park in September 2004. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable premises in Holland Park with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 invoiced yearly. The lease came to a finish in 2098. Considering the 72 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.