Main reasons to start your Kensington lease extension

Why you should start your Kensington lease extension today:

A Kensington lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kensington. Clearly, the period of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Kensington have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Kensington lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease

Kensington property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Kensington with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 warrant it.

Mortgage lenders will not lend on a short lease

Lenders are really restricting their approach as regards to homes in Kensington with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus restricting your market.

Why use us for your lease extension in Kensington?

Using our service gives you enhanced control over the value of your Kensington leasehold, as your property will be more valuable and marketable in terms 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.

Kensington Lease Extension Case Summaries:

Natasha, Kensington, West London,

Following unsuccessful discussions with the landlord of her one bedroom flat in Kensington, Natasha initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work completed in October 2007. The landlord’s costs were kept to an absolute minimum.

Kensington case:

Last April we were called by Mr and Mrs. R Gómez , who was assigned a lease of a newly refurbished apartment in Kensington in April 1996. We are asked if we could approximate the premium could be to extend the lease by 90 years. Similar residencies in Kensington with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced monthly. The lease ended in 2103. Considering the 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.