Covent Garden leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Covent Garden will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Covent Garden 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Covent Garden,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Covent Garden valuers.
Dylan was the the leasehold proprietor of a high value flat in Covent Garden on the market with a lease of a little over 72 years remaining. Dylan on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and secured satisfactory resolution informally and sell the flat.
Last Christmas we were approach by Mr and Mrs. P Bonnet , who purchased a basement apartment in Covent Garden in October 2008. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparative properties in Covent Garden with a long lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease finished on 5 February 2095. Taking into account 69 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Covent Garden residence is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case affected 1 flat. The unexpired term as at the valuation date was 73.26 years.