Why you should start your South Kensington lease extension

Main reasons to start your South Kensington lease extension today:

Increase your lease and increase your South Kensington property value

Unfortunately that a South Kensington residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the South Kensington property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in South Kensington will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.

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

It is generally accepted 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 many years ahead.

Lenders may not issue a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. In the past lenders would lend on a lease 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 now have a minimum term of 75 years as standard.

Why use us for your lease extension in South Kensington?

Using our service gives you better control over the value of your South Kensington leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

South Kensington Lease Extension Case Summaries:

Jude, South Kensington, West London

During the course of the last few months Jude, came dangerously near to the 80-year threshold with the lease on his one bedroom apartment in South Kensington. In buying his home two decades ago, the lease term was of little importance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Jude extended the lease at the eleventh hour in April. Jude and the freeholder subsequently settled on the final figure of £6,000 . If the lease had dropped below eighty years, the amount would have become more costly by a minimum £975.

South Kensington case:

Dr M Taylor moved into a one bedroom flat in South Kensington in October 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in South Kensington with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 billed annually. The lease end date was in 2093. Taking into account 67 years outstanding we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus professional charges.