Why you should commence your Kenton lease extension

Why you should start your Kenton lease extension today:

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

The market value of a leasehold property in Kenton depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year cut off point. Current legislation entitles Kenton qualifying lessees to an additional term of 90 years over and above the existing term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in Kenton with over one hundred 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 freehold unless savings on ground rent and service charges warrant it.

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

Mortgage companies do not lend on short residential leases. You are likely to encounter problems if you want to sell your flat in Kenton if the remaining term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have varying criteria but on the whole theyrequire a minimum remaining lease term of seventy years.

Why use us for your lease extension in Kenton?

The conveyancing solicitors that we work with undertake Kenton 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.

Kenton Lease Extension Example Cases:

Jackson, Kenton, North London,

Jackson owned a 2 bedroom flat in Kenton on the market with a lease of a few days over 61 years left. Jackson informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.

Kenton case:

In 2012 we were approached by Mr V Turner who, having was assigned a lease of a ground floor apartment in Kenton in February 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar properties in Kenton with an extended lease were worth £223,400. The mid-range ground rent payable was £60 billed monthly. The lease terminated on 8 April 2085. Considering the 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.