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.

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in South Kensington may extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do think carefully before delaying your South Kensington lease extension. Putting off the costs now simply escalates the price you will ultimately have to pay to extend the lease.

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

Leasehold premises in South Kensington with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not lend with a short lease

Most mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Even if you don't require a mortgage, you should be mindful that it is probable that someone wishing to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of your property will likely suffer. In the last decade most mortgage lenders 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 conveyancing solicitors 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 conveyancing solicitor we work with provide it.

South Kensington Lease Extension Example Cases:

Kyle, South Kensington, West London

In recent months Kyle, came critically near to the eighty-year mark with the lease on his one bedroom flat in South Kensington. In buying his home two decades ago, the unexpired term was of little relevance. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. Kyle was able to extend his lease just under the wire in July. Kyle and the landlord ultimately settled on the final figure of £6,000 . If the lease had descended below eighty years, the premium would have increased by a minimum £1,050.

South Kensington case:

Mr and Mrs. J Bailey purchased a one bedroom apartment in South Kensington in February 1995. The question was if we could approximate the price would be to prolong the lease by ninety years. Identical homes in South Kensington with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired in 2081. Taking into account 55 years outstanding we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.