Main reasons to commence your Kimbolton lease extension

Main reasons to commence your Kimbolton lease extension today:

A Kimbolton leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Kimbolton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Kimbolton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Kimbolton will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

Kimbolton property with a lease extension is almost the same value as a freehold

Leasehold residencies in Kimbolton with over one hundred 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 buying the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to lend on a short lease

Nearly all banks and building societies require a lengthy amount of time left on a leasehold property before they will contemplate lending on it. Even if you don't need a mortgage, you should be conscious that it is probable that someone intending to acquire your property in the future might well do, so if they can't obtain a mortgage, then the value of your property could suffer. Since 2008 most banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

Get in touch with one of our Kimbolton lease extension solicitors or enfranchisement solicitors

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

Kimbolton Lease Extension Case Studies:

Lucas, Kimbolton, Cambridgeshire

18 months ago Lucas, came perilously close to the 80-year mark with the lease on his ground floor apartment in Kimbolton. Having bought his property 19 years ago, the unexpired term was of minimal concern. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Lucas arranged for a lease extension at the eleventh hour in March. Lucas and the freeholder in the end agreed on the final figure of £5,500 . If the lease had fallen to less than eighty years, the sum would have gone up by at least £1,125.

Kimbolton case:

Last July we were called by Mrs Anna Bailey , who owned a garden apartment in Kimbolton in August 2009. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical properties in Kimbolton with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease expired on 2 May 2106. Having 80 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.

Kimbolton case:

In 2011 we were called by Mr and Mrs. V Clarke who, having bought a ground floor apartment in Kimbolton in January 2011. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Kimbolton with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease ran out on 24 September 2095. Considering the 69 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.