Main reasons to start your North Kensington lease extension

Main reasons to commence your North Kensington lease extension today:

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

North Kensington leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher premium will be due. Leasehold owners in North Kensington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.

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

Leasehold residencies in North Kensington with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders will not issue a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in North Kensington lease extensions?

Using our service will provide you enhanced control over the value of your North Kensington leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

North Kensington Lease Extension Case Summaries:

Ali, North Kensington, West London,

Ali was the the leasehold owner of a studio flat in North Kensington on the market with a lease of just over fifty eight years unexpired. Ali informally contacted his freeholder being a well known Bristol-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 £100 annually. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

North Kensington case:

In 2012 we were approached by Mr Ben Bonnet who, having moved into a newly refurbished flat in North Kensington in November 2004. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical homes in North Kensington with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease lapsed in 2106. Considering the 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.