Main reasons to start your North Kensington lease extension

Main reasons to commence your North Kensington lease extension today:

Increase your lease and increase your North Kensington property value

When it comes to long leasehold property in North Kensington, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years remaining. Leasehold owners in North Kensington with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has under eighty years remaining, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

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

Banks and Building Societies have set criteria when loaning funds secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your North Kensington property.

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

Engaging our service gives you better control over the value of your North Kensington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers 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:

Ali, North Kensington, West London

Twenty four months ago Ali, came seriously near to the eighty-year mark with the lease on his leasehold apartment in North Kensington. Having purchased his flat two decades ago, the lease term was of little concern. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Ali was able to extend his lease just in the nick of time in May. Ali and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he failed to meet the deadline, the amount would have become more costly by a minimum £1,125.

North Kensington case:

Dr G Baker was assigned a lease of a one bedroom apartment in North Kensington in April 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in North Kensington with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated on 25 September 2102. Considering the 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.