Why you should start your Pimlico lease extension

Why you should start your Pimlico lease extension today:

Increase your lease and increase your Pimlico property value

Pimlico leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Pimlico tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Pimlico you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Pimlico with over 100 years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not issue a mortgage with a short lease

Lending institutions have set criteria when loaning funds secured on leasehold property. Many will simply refrain from lending at all once the remaining lease term drops below a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below seventy years suitable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to refinance your Pimlico property.

Why use us for your lease extension in Pimlico?

Engaging our service gives you enhanced control over the value of your Pimlico leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Pimlico Lease Extension Example Cases:

Freya, Pimlico, London,

Off the back of protracted negotiations with the landlord of her studio flat in Pimlico, Freya initiated the lease extension process as the eighty year mark was rapidly coming. The legal work was concluded in May 2015. The landlord’s fees were kept to an absolute minimum.

Pimlico case:

In 2009 we were approached by Dr George Nelson who, having acquired a recently refurbished apartment in Pimlico in July 2007. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable properties in Pimlico with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed on 13 May 2096. Taking into account 70 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.