There is no doubt about it a leasehold property in Kensington is a wasting asset as a result of the diminishing lease term. If the residual term has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired 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 primary reason why you should extend the lease sooner rather than later. Most flat owners in Kensington will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Kensington with more than one hundred years left on the lease are often regarded as a ‘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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Kensington can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Kensington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Max, came precariously near to the 80-year mark with the lease on his studio apartment in Kensington. In buying his property twenty years ago, the unexpired term was of no concern. As luck would have it, he recognised he needed to take steps soon on a lease extension. Max extended the lease just in the nick of time in July. Max and the freeholder via the management company in the end settled on a premium of £6,000 . If the lease had slipped to less than 80 years, the amount would have escalated by at least £1,025.
Last Autumn we were contacted by Dr B Evans , who purchased a studio flat in Kensington in August 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Kensington with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease expired in 2084. Considering the 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Kensington property is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired residue of the current lease was 37.79 years.