Why you should start your Kimberley lease extension

Why you should start your Kimberley lease extension today:

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

Unfortunately that a Kimberley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Kimberley property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Kimberley will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders may not finance a property with a short lease

Many banks and building societies will be unwilling to lend on a lease with less than 70 years unexpired - although this varies between mortgage companies. A purchaser will likely find it difficult to obtain a mortgage and this could result in your Kimberley property becoming difficult to sell or remortgage.

Why use us for your lease extension in Kimberley?

Using our service gives you increased control over the value of your Kimberley leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kimberley Lease Extension Example Cases:

Lucas, Kimberley, Nottinghamshire

During the course of the last few months Lucas, came very near to the 80-year mark with the lease on his studio apartment in Kimberley. In buying his home two decades ago, the unexpired term was of no bearing. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Lucas was able to extend his lease just under the wire last June. Lucas and the landlord in the end settled on a premium of £6,000 . If the lease had descended lower than eighty years, the figure would have become more costly by a minimum £1,100.

Kimberley case:

In 2014 we were phoned by Ms Rhiannon Young who, having owned a recently refurbished flat in Kimberley in May 1996. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Kimberley with an extended lease were in the region of £290,000. The average ground rent payable was £60 collected every twelve months. The lease concluded in 2106. Taking into account 80 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.

Kimberley case:

Mr and Mrs. V Brown acquired a studio flat in Kimberley in April 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Kimberley with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected annually. The lease expired on 28 July 2086. Having 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.