Main reasons to commence your Pimlico lease extension

Top reasons for lease extension now:

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

With a residential leasehold premises in Pimlico, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Pimlico with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has fewer than 80 years remaining, under the relevant legislation the landlord can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.

Pimlico property with a lease extension has roughly the same value as a freehold

Leasehold premises in Pimlico with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Lenders are really restricting their approach as regards to homes in Pimlico with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus limiting your market.

Why use us for your lease extension in Pimlico?

Using our service gives you increased control over the value of your Pimlico leasehold, as your property will be more valuable and marketable in terms of lease length should you decide 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.

Pimlico Lease Extension Example Cases:

Jasper, Pimlico, London

Half a year ago Jasper, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Pimlico. Having purchased his home 19 years previously, the unexpired term was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Jasper arranged for a lease extension just under the wire last March. Jasper and the landlord eventually settled on the final figure of £6,000 . If he not met the deadline, the premium would have escalated by at least £1,075.

Pimlico case:

Last Autumn we were called by Mr and Mrs. D Girard , who took over the lease of a first floor apartment in Pimlico in February 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical properties in Pimlico with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 billed per annum. The lease ran out on 7 July 2084. Considering the 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.