Why you should commence your Kenilworth lease extension

Top reasons for lease extension now:

Increase your lease and increase your Kenilworth property value

Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Kenilworth. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Kenilworth have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Please give careful attention before putting off your Kenilworth lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease

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

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.

Mortgage lenders may not lend with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Kenilworth lease extensions?

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

Kenilworth Lease Extension Example Cases:

Liam, Kenilworth, Warwickshire

Twenty four months ago Liam, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Kenilworth. In buying his property two decades ago, the unexpired term was of no significance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Liam arranged for a lease extension just in the nick of time last April. Liam and the freeholder in the end settled on a premium of £5,000 . If he failed to meet the deadline, the price would have increased by at least £925.

Kenilworth case:

In 2011 we were called by Mr and Mrs. A Anderson who, having purchased a purpose-built apartment in Kenilworth in August 1999. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical homes in Kenilworth with 100 year plus lease were valued around £176,200. The average ground rent payable was £65 billed yearly. The lease concluded on 16 August 2082. Having 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including fees.

Kenilworth case:

Dr Seth Khan took over the lease of a one bedroom apartment in Kenilworth in September 2010. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Kenilworth with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 invoiced annually. The lease ended in 2093. Considering the 67 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.