Top reasons for North Kensington lease extension

Why you should commence your North Kensington lease extension today:

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

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 gets more expensive. Legislation has been in place for sometime now allowing qualifying North Kensington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in North Kensington you really ought to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a North Kensington flat owner with a lease having around 80 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 properties in North Kensington with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may not issue a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties once you come to sell or refinance your property as it will be practically unmortgageable. You might have no immediate desire to sell but when you do your buyer must wait 2 years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in North Kensington?

Irrespective of whether you are a tenant or a landlord in North Kensington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North Kensington valuers.

North Kensington Lease Extension Case Studies:

Jake, North Kensington, West London

Last October Jake, came critically close to the 80-year mark with the lease on his purpose- built flat in North Kensington. In buying his home two decades ago, the lease term was of little significance. by good luck, he recognised he needed to take action soon on Extending the lease. Jake extended the lease just ahead of time in April. Jake and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £950.

North Kensington case:

In 2012 we were approached by Mrs I Bailey who, having owned a recently refurbished flat in North Kensington in July 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar properties in North Kensington with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 billed quarterly. The lease finished on 16 January 2090. Taking into account 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including professional charges.