Top reasons for Kensington lease extension

Why you should commence your Kensington lease extension today:

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

Kensington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Kensington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Kensington you really ought to check if your lease has between 70 and 90 years left. There are good reasons why a Kensington leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay

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

Leasehold premises in Kensington with in excess of one hundred years unexpired on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders may not issue a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become jittery at around 75 years. This may be problematic as and when you come to market or refinance your flat as it will be effectively unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser will have to wait a couple of years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Kensington?

Regardless of whether you are a tenant or a freeholder in Kensington,the lease extension lawyers 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:

Noah, Kensington, West London

In recent months Noah, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Kensington. Having bought his property two decades ago, the lease term was of little interest. As luck would have it, he became aware that he would soon be paying an escalated premium for a lease extension. Noah extended the lease just in the nick of time last May. Noah and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If the lease had slipped below 80 years, the figure would have become more exhorbitant by at least £1,025.

Kensington case:

Dr I Wilson completed a first floor flat in Kensington in July 2012. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative flats in Kensington with a long lease were valued about £261,600. The average amount of ground rent was £60 billed yearly. The lease terminated in 2077. Given that there were 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.