Main reasons to commence your Kilburn Park lease extension

Main reasons to commence your Kilburn Park lease extension today:

A Kilburn Park leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Kilburn Park is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised well before the eighty year cut off point. Statute enables Kilburn Park qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lenders may decide not to lend with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Kilburn Park?

Regardless of whether you are a tenant or a landlord in Kilburn Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kilburn Park valuers.

Kilburn Park Lease Extension Example Cases:

Sam, Kilburn Park, North West London,

Sam owned a conversion apartment in Kilburn Park on the market with a lease of a few days over sixty years unexpired. Sam informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend 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. Ordinarily, ground rent would not be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.

Kilburn Park case:

Mr and Mrs. M Ramírez was assigned a lease of a garden flat in Kilburn Park in April 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Kilburn Park with 100 year plus lease were valued about £225,400. The average ground rent payable was £45 billed monthly. The lease end date was on 21 March 2090. Taking into account 64 years left we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus professional charges.