Top reasons for South Kensington lease extension

Top reasons for lease extension now:

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

Unfortunately that a South Kensington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the South Kensington property market.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 dips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in South Kensington will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

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

Leasehold premises in South Kensington with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not lend on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Even if you don't need a mortgage, you should be aware that it is likely that someone intending to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the value of your property could suffer. Since 2008 most banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

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 conveyancer we work with provide it.

South Kensington Lease Extension Example Cases:

Charlie, South Kensington, West London

Two years ago Charlie, came seriously near to the 80-year mark with the lease on his purpose- built flat in South Kensington. Having bought his flat two decades ago, the length of the lease was of minimal interest. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Charlie arranged for a lease extension just under the wire last September. Charlie and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If the lease had fallen to less than eighty years, the sum would have escalated by a minimum £1,050.

South Kensington case:

In 2013 we were called by Dr Aarav Mitchell who, having owned a studio apartment in South Kensington in September 2003. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative homes in South Kensington with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2096. Given that there were 70 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.