Why you should start your Kingsthorpe lease extension

Why you should commence your Kingsthorpe lease extension today:

Increase your lease and increase your Kingsthorpe property value

Kingsthorpe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Kingsthorpe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Kingsthorpe you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Kingsthorpe with over 100 years left on the lease are sometimes regarded as a ‘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 reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies will not loan monies on a short lease

Most mortgage lenders insist on a lengthy amount of time left on a leasehold property before they will consider lending on it. Regardless of whether you need a mortgage, you should be aware that it is probable that someone wanting to buy your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of the property will likely suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

Why use us for your lease extension in Kingsthorpe?

Irrespective of whether you are a tenant or a freeholder in Kingsthorpe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingsthorpe valuers.

Kingsthorpe Lease Extension Example Cases:

Toby, Kingsthorpe, Northamptonshire

Last Christmas Toby, started to get near to the 80-year mark with the lease on his leasehold flat in Kingsthorpe. In buying his flat two decades ago, the lease term was of no relevance. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Toby was able to extend his lease just under the wire last September. Toby and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If the lease had dropped below 80 years, the sum would have increased by at least £950.

Kingsthorpe case:

Last Summer we were contacted by Dr D Bonnet , who acquired a one bedroom apartment in Kingsthorpe in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Kingsthorpe with an extended lease were worth £186,000. The average amount of ground rent was £65 billed per annum. The lease expired on 19 April 2084. Considering the 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 not including expenses.

Kingsthorpe case:

In 2014 we were phoned by Dr S Miller who, having acquired a garden flat in Kingsthorpe in February 2006. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative flats in Kingsthorpe with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2095. Taking into account 69 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.