Top reasons for Kennington lease extension

Why you should start your Kennington lease extension today:

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

It’s a harsh certainty that a Kennington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Kennington property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Kennington will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.

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

Leasehold premises in Kennington with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 warrant it.

Lenders may decide not to issue a mortgage with a short lease

Lenders are tightening their criteria and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that many flats in Kennington were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

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

Retaining our service will provide you increased control over the value of your Kennington leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Kennington Lease Extension Case Studies:

Eliot, Kennington, South London,

Eliot owned a high value apartment in Kennington on the market with a lease of a little over sixty years outstanding. Eliot informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.

Kennington case:

In 2010 we were e-mailed by Mr Michael Stewart who, having completed a basement flat in Kennington in July 2004. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparative flats in Kennington with a long lease were valued around £171,800. The average amount of ground rent was £55 invoiced quarterly. The lease ran out on 19 April 2076. Given that there were 50 years outstanding we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.