Main reasons to start your South Kensington lease extension

Why you should commence your South Kensington lease extension today:

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

There is no doubt about it a leasehold property in South Kensington is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Many flat owners in South Kensington will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in South Kensington with over 100 years unexpired 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not lend with a short lease

Why use us for your lease extension in South Kensington?

The conveyancers that we work with undertake 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 lawyer we work with provide it.

South Kensington Lease Extension Case Studies:

Owen, South Kensington, West London,

Owen owned a conversion apartment in South Kensington being sold with a lease of a little over fifty eight years remaining. Owen informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Owen to invoke his statutory right. Owen procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.

South Kensington case:

Last Summer we were contacted by Mr M Stewart , who took over the lease of a purpose-built flat in South Kensington in November 1998. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in South Kensington with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated in 2077. Having 51 years outstanding we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.