Stop! Your Lease Extension in South Kensington Could Be FREE

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Many leaseholders in South Kensington are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in South Kensington has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should start your South Kensington lease extension

Why you should start your South Kensington lease extension today:

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

South Kensington residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.

South Kensington property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions may not loan monies with a short lease

Many banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be mindful that it is probable that someone intending to acquire your property in the future might well do, so if they are unable to secure a mortgage, then the market price of your property could be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

You must report the unexpired lease term to us and await our instructions if: 
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided.
 


We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Royal Bank of Scotland Mortgage term plus 30 years.

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

Using our service will provide you enhanced control over the value of your South Kensington leasehold, as your property will be more valuable and saleable 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 Example Cases:

Harry, South Kensington, West London

In 2014 Harry, came perilously near to the 80-year mark with the lease on his garden flat in South Kensington. In buying his home two decades ago, the unexpired term was of little bearing. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Harry extended the lease at the eleventh hour last April. Harry and the freeholder ultimately settled on sum of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £1,050.

South Kensington case:

Last Spring we were e-mailed by Dr E Gómez , who was assigned a lease of a garden flat in South Kensington in November 2005. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in South Kensington with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected per annum. The lease ended on 7 October 2101. Given that there were 75 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.

Decision in Kensington and Chelsea

An example of a Lease Extension decision for a South Kensington property is Flat 16 21/22 Stanhope Gardens in November 2010. the Leasehold Valuation Tribunal concluded that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, was £106,975 This case related to 1 flat. The unexpired term as at the valuation date was 51.93 years.