Main reasons to start your South Kensington lease extension

Why you should commence your South Kensington lease extension today:

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

South Kensington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most South Kensington tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in South Kensington you must investigate if your lease has between seventy and 90 years left. There are compelling reasons why a South Kensington leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay

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

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

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

Most mortgage companies insist on a lengthy amount of time remaining on any leasehold residence before they will consider lending on it. Regardless of whether you need a mortgage, you should bear in mind that it is probable that someone intending to acquire your property in the future might well do, so if they can't secure a mortgage, then the market price of your property could be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in South Kensington?

The conveyancers that we work with procure South Kensington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

South Kensington Lease Extension Case Summaries:

Aarav, South Kensington, West London,

Aarav was the the leasehold owner of a 2 bedroom flat in South Kensington on the market with a lease of fraction over fifty eight years left. Aarav on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

South Kensington case:

Last Winter we were called by Mr W Alexander , who purchased a one bedroom apartment in South Kensington in March 2012. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative properties in South Kensington with an extended lease were worth £240,600. The average amount of ground rent was £65 collected annually. The lease concluded in 2088. Having 62 years unexpired we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.