Top reasons for Kingswood lease extension

Why you should commence your Kingswood lease extension today:

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

Kingswood residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to finance a property on a short lease

Many mortgage companies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be aware that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they can't obtain a mortgage, then the market price of the property will likely be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

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

Kingswood Lease Extension Case Summaries:

James, Kingswood, Gloucestershire

18 months ago James, came critically near to the eighty-year mark with the lease on his one bedroom flat in Kingswood. In buying his flat two decades ago, the unexpired term was of little relevance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. James arranged for a lease extension just under the wire in September. James and the freeholder via the management company in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £1,000.

Kingswood case:

Last month we were contacted by Mr B Taylor , who completed a purpose-built apartment in Kingswood in August 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Kingswood with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced annually. The lease terminated in 2106. Having 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.

Kingswood case:

In 2010 we were approached by Dr Luke King who, having took over the lease of a purpose-built apartment in Kingswood in February 2010. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Kingswood with a long lease were valued around £275,000. The average ground rent payable was £45 invoiced annually. The lease expired in 2095. Taking into account 69 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.