Why you should start your Knightsbridge lease extension

Why you should commence your Knightsbridge lease extension today:

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

For anyone whose Knightsbridge home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

Knightsbridge property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Knightsbridge with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not lend on a short lease

Banks and building societies are tightening their criteria and a meaningful number now require flats to have at least 60 if not 70 years left at the end of the mortgage. As a number of flats in Knightsbridge were built in the fifties, sixties and seventies as a result many now require lease extensions if they wish to obtain a mortgage.

Why use us for your lease extension in Knightsbridge?

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

Knightsbridge Lease Extension Example Cases:

Jonathan, Knightsbridge, London,

Jonathan was the the leasehold owner of a studio apartment in Knightsbridge being marketed with a lease of just over 59 years unexpired. Jonathan informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Knightsbridge case:

In 2010 we were contacted by Mrs Chelsea Evans who, having completed a basement apartment in Knightsbridge in April 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Knightsbridge with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 5 March 2086. Considering the 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including expenses.