Top reasons for Pimlico lease extension

Why you should start your Pimlico lease extension today:

Increase your lease and increase your Pimlico property value

When it comes to residential leasehold property in Pimlico, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Pimlico with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once a lease has under eighty years outstanding, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lenders will not lend with a short lease

Almost all banks and building societies will not lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Pimlico property being difficult to sell or remortgage.

What makes us experts in Pimlico lease extensions?

Retaining our service gives you increased control over the value of your Pimlico leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Pimlico Lease Extension Case Summaries:

Thomas, Pimlico, London,

Thomas owned a conversion flat in Pimlico on the market with a lease of just over 72 years unexpired. Thomas on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.

Pimlico case:

In 2009 we were phoned by Ms W Dupont who, having completed a ground floor flat in Pimlico in November 1998. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar flats in Pimlico with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2100. Given that there were 74 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.