Why you should commence your Maidstone lease extension

Why you should commence your Maidstone lease extension today:

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

Maidstone leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Maidstone residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Maidstone you really ought to see if your lease has between 70 and 90 years left. There are compelling reasons why a Maidstone flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions will not loan monies on a short lease

Mortgage lenders have set criteria when loaning monies secured on leasehold property. Some will simply refuse lend at all once the residual lease term slips beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Maidstone home.

Why use us for your lease extension in Maidstone?

The lawyers that we work with undertake Maidstone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Maidstone Lease Extension Case Summaries:

Poppy, Maidstone, Kent,

Trailing unsuccessful correspondence with the landlord of her two bedroom flat in Maidstone, Poppy initiated the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension was finalised in April 2009. The landlord’s fees were kept to an absolute minimum.

Maidstone case:

In 2012 we were approached by Mr and Mrs. Y Anderson who, having acquired a one bedroom flat in Maidstone in August 1998. The question was if we could approximate the premium could be for a 90 year lease extension. Identical homes in Maidstone with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 billed monthly. The lease ran out on 9 July 2080. Given that there were 54 years unexpired we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.

Maidstone case:

Last November we were contacted by Dr Jacob Fournier , who owned a garden apartment in Maidstone in August 2009. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative premises in Maidstone with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed quarterly. The lease concluded in 2091. Given that there were 65 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.