Why you should commence your Kennington lease extension

Main reasons to start your Kennington lease extension today:

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

Kennington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Kennington tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Kennington you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may not finance a property on a short lease

Many banks and building societies will not lend on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Kennington property being difficult to sell or refinance.

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

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

Kennington Lease Extension Case Studies:

Eliot, Kennington, South London

During the course of the last few months Eliot, started to get near to the eighty-year mark with the lease on his two bedroom flat in Kennington. Having bought his flat twenty years previously, the length of the lease was of no relevance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Eliot arranged for a lease extension just in the nick of time last April. Eliot and the landlord in the end agreed on the final figure of £6,000 . If the lease had fallen to less than 80 years, the premium would have become more costly by at least £875.

Kennington case:

Last Winter we were called by Mr and Mrs. D Mitchell , who was assigned a lease of a recently refurbished apartment in Kennington in February 2011. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Kennington with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 billed yearly. The lease terminated in 2103. Taking into account 77 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.