Why you should start your North Kensington lease extension

Why you should start your North Kensington lease extension today:

Increase your lease and increase your North Kensington property value

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

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

Leasehold residencies in North Kensington with over 100 years left 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Banks and Building Societies have set criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than seventy years suitable security. In addition to this being important when selling, it is also relevant if you are wanting to remortgage your North Kensington home.

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

Retaining our service will provide you increased control over the value of your North Kensington leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

North Kensington Lease Extension Example Cases:

Seth, North Kensington, West London,

Seth owned a conversion flat in North Kensington on the market with a lease of a few days over 72 years outstanding. Seth on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.

North Kensington case:

Dr Toby Clark moved into a first floor flat in North Kensington in August 1997. The question was if we could estimate the price could be to extend the lease by an additional years. Comparative premises in North Kensington with an extended lease were worth £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out in 2089. Taking into account 63 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including fees.