Main reasons to start your Kensington lease extension

Top reasons for lease extension now:

Increase your lease and increase your Kensington property value

As the the remaining lease term of a Kensington residential lease lessens so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Kensington will meet the qualifying criteria; however a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may not finance a property on a short lease

Banks and Building Societies have specific criteria when loaning funds charged on leasehold homes. Some will simply refuse lend at all once an unexpired lease term falls below a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your Kensington home.

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

The conveyancing solicitors that we work with procure Kensington 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 conveyancer we work with provide it.

Kensington Lease Extension Example Cases:

Danielle, Kensington, West London,

Following unsuccessful discussions with the freeholder of her two bedroom flat in Kensington, Danielle commenced the lease extension process as the 80 year mark was quickly approaching. The legal work was finalised in May 2007. The landlord’s charges were negotiated to approximately 450 pounds.

Kensington case:

In 2011 we were contacted by Ms Molly Kelly who, having bought a one bedroom apartment in Kensington in May 2005. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Kensington with an extended lease were valued about £166,400. The average amount of ground rent was £60 collected annually. The lease expiry date was on 26 February 2080. Given that there were 54 years as a residual term we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.