Main reasons to start your Kensington lease extension

Main reasons to commence your Kensington lease extension today:

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

The re-sale value of a leasehold property in Kensington depends on how long the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed well before the eighty year threshold. Current legislation enables Kensington qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Kensington with over 100 years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to loan monies on a short lease

Most high street banks are making their criteria more stringent and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. As many flats in Kensington were built in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Retaining our service will provide you increased control over the value of your 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.

Kensington Lease Extension Example Cases:

Rosie, Kensington, West London,

After protracted correspondence with the freeholder of her leasehold apartment in Kensington, Rosie commenced the lease extension process as the 80 year mark was quickly advancing. The legal work was concluded in October 2010. The landlord’s costs were restricted to a tad over 450 pounds.

Kensington case:

Last Winter we were called by Mrs Sarah Martinez , who bought a garden flat in Kensington in January 1999. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Kensington with a long lease were worth £246,800. The mid-range ground rent payable was £60 billed yearly. The lease terminated on 25 September 2076. Considering the 50 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.