Main reasons to commence your Kenton lease extension

Main reasons to commence your Kenton lease extension today:

Increase your lease and increase your Kenton property value

When it comes to domestic leasehold property in Kenton, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Kenton with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.

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

Leasehold residencies in Kenton with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to issue a mortgage on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Kenton lease extensions?

Lease extensions in Kenton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.

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 in-depth market knowledge dealing with Kenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Kenton Lease Extension Case Studies:

John, Kenton, North London

18 months ago John, started to get close to the eighty-year threshold with the lease on his leasehold flat in Kenton. Having purchased his property 19 years previously, the length of the lease was of little relevance. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. John extended the lease just in the nick of time last March. John and the landlord subsequently agreed on an amount of £5,500 . If the lease had slid lower than 80 years, the sum would have increased by a minimum £900.

Kenton case:

In 2014 we were called by Mr and Mrs. E Murphy who, having completed a one bedroom flat in Kenton in April 1998. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative homes in Kenton with a long lease were worth £174,200. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish on 10 April 2077. Having 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.