Why you should commence your Kenton lease extension

Main reasons to commence your Kenton lease extension today:

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

The closer a domestic lease in Kenton gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible 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 termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Kenton will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

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

Leasehold premises in Kenton with over 100 years remaining on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Kenton?

The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.

Kenton Lease Extension Example Cases:

Muhammad, Kenton, North London,

Muhammad was the the leasehold proprietor of a studio flat in Kenton being sold with a lease of fraction over 61 years outstanding. Muhammad informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Kenton case:

Mr Archie Girard acquired a purpose-built flat in Kenton in May 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Kenton with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease expired in 2094. Considering the 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.