Why you should commence your Kensington lease extension

Why you should start your Kensington lease extension today:

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

With a residential leasehold premises in Kensington, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Kensington with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years left, under the current legislation the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

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

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.

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

Nearly all banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should be aware that it is probable that someone wanting to buy your property in the future might well do, so if they are unable to get a mortgage, then the financial worth of your property could suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

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

Irrespective of whether you are a tenant or a freeholder in Kensington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kensington valuers.

Kensington Lease Extension Case Studies:

Caleb, Kensington, West London,

Caleb was the the leasehold owner of a 2 bedroom flat in Kensington on the market with a lease of fraction over 59 years outstanding. Caleb informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Kensington case:

Last month we were called by Mr and Mrs. R Vincent , who moved into a garden flat in Kensington in September 1996. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable premises in Kensington with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed on 15 July 2099. Having 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.