Main reasons to commence your Pimlico lease extension

Why you should commence your Pimlico lease extension today:

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

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Pimlico can extend the lease for a further ninety years in accordance with legislation. Please think carefully before delaying your Pimlico lease extension. Shelving the costs now simply increases the amount you will eventually be required to pay for a lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Pimlico with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not issue a mortgage on a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once the remaining lease term falls beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Pimlico home.

What makes us experts in Pimlico lease extensions?

Retaining our service will provide you enhanced control over the value of your Pimlico leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors 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:

Tyler, Pimlico, London,

Tyler was the the leasehold owner of a conversion flat in Pimlico on the market with a lease of a little over 59 years remaining. Tyler on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.

Pimlico case:

In 2012 we were contacted by Mr and Mrs. B Hernández who, having purchased a one bedroom flat in Pimlico in September 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical properties in Pimlico with a long lease were worth £240,600. The average ground rent payable was £60 collected yearly. The lease ran out on 4 July 2088. Considering the 62 years left we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus expenses.