Top reasons for Kennington lease extension

Top reasons for lease extension now:

A Kennington leasehold property depreciates with the years remaining on the lease.

Kennington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Kennington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Kennington you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

Leasehold residencies in Kennington with more than 100 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This will be problematic as and when you need to dispose of or refinance your property as it will be practically unmortgageable. You might not have an imminent plan to sell but when you do your buyer will need to wait two years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Kennington?

Irrespective of whether you are a tenant or a freeholder in Kennington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kennington valuers.

Kennington Lease Extension Example Cases:

Rebecca, Kennington, South London,

Following unsuccessful negotiations with the landlord of her purpose-built apartment in Kennington, Rebecca started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension completed in July 2012. The landlord’s charges were kept to an absolute minimum.

Kennington case:

Last Summer we were approach by Mrs Alice Martinez , who purchased a one bedroom apartment in Kennington in April 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar properties in Kennington with an extended lease were valued about £240,600. The average amount of ground rent was £60 invoiced monthly. The lease expired in 2088. Considering the 62 years left we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.