Top reasons for Covent Garden lease extension

Why you should commence your Covent Garden lease extension today:

A Covent Garden leasehold property depreciates with the years remaining on the lease.

The nearer a domestic lease in Covent Garden nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Covent Garden will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly 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 same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.

Lenders may decide not to loan monies on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may be problematic once you need to sell or remortgage your flat as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your buyer will need to hold off for two years before being able to start the legal procedures for a lease extension.

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

Engaging our service gives you increased control over the value of your Covent Garden leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.

Covent Garden Lease Extension Example Cases:

Zachary, Covent Garden, London,

Zachary was the the leasehold owner of a high value flat in Covent Garden on the market with a lease of a little over fifty eight years remaining. Zachary informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.

Covent Garden case:

In 2009 we were e-mailed by Ms S Turner who, having acquired a purpose-built apartment in Covent Garden in March 2009. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Covent Garden with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease expired in 2079. Having 53 years outstanding we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of legals.