Why you should start your North Kensington lease extension

Top reasons for lease extension now:

A North Kensington leasehold property depreciates with the years remaining on the lease.

With a long leasehold property in North Kensington, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years left. Anyone in North Kensington with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has less than 80 years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.

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

Leasehold residencies in North Kensington with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Mortgage companies are making their criteria more stringent and a meaningful number now want flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Given that many flats in North Kensington were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in North Kensington?

Retaining our service gives you better 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:

Max, North Kensington, West London,

Max was the the leasehold proprietor of a conversion flat in North Kensington being sold with a lease of a little over 61 years unexpired. Max on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

North Kensington case:

Mr B Campbell owned a one bedroom apartment in North Kensington in November 1997. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in North Kensington with 100 year plus lease were valued around £208,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed in 2083. Taking into account 57 years left we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus expenses.