Pimlico Lease Extension - Free Consultation

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Why you should commence your Pimlico lease extension


Top reasons for lease extension now:

Increase your lease and increase your Pimlico property value

Pimlico leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Pimlico enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pimlico you should investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Pimlico flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Lenders are really clamping down as regards to properties in Pimlico with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus narrowing your market.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Santander 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
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

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.
Yorkshire Building Society 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.

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

Lease extensions in Pimlico can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Pimlico lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Pimlico Lease Extension Case Studies:

Benjamin, Pimlico, London,

Benjamin owned a conversion apartment in Pimlico on the market with a lease of fraction over fifty eight years unexpired. Benjamin informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Pimlico case:

In 2013 we were called by Mr and Mrs. S James who, having owned a newly refurbished apartment in Pimlico in February 1997. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative properties in Pimlico with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2076. Taking into account 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.

Decision in Westminster

An example of a Lease Extension case for a Pimlico residence is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case affected 2 flats. The unexpired residue of the current lease was 56 years.