Why you should commence your Kilburn Park lease extension

Why you should commence your Kilburn Park lease extension today:

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

The value of Kilburn Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in Kilburn Park with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.

Mortgage lenders may not lend on a short lease

Mortgage companies are really restricting their approach as regards to properties in Kilburn Park with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus reducing the number of prospective buyers.

What makes us experts in Kilburn Park lease extensions?

Engaging our service gives you better control over the value of your Kilburn Park leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kilburn Park Lease Extension Example Cases:

Aiden, Kilburn Park, North West London,

Aiden owned a conversion flat in Kilburn Park being marketed with a lease of a few days over 61 years remaining. Aiden on an informal basis spoke with his landlord a well known Manchester-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 initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.

Kilburn Park case:

Last Autumn we were approach by Mrs L Gómez , who moved into a one bedroom flat in Kilburn Park in September 2005. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Kilburn Park with a long lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease expired in 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.