Covent Garden leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Covent Garden will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Covent Garden with over one hundred years remaining on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Covent Garden leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
In recent months Elijah, came very close to the 80-year threshold with the lease on his first floor flat in Covent Garden. Having purchased his property 19 years ago, the length of the lease was of little interest. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Elijah extended the lease just in the nick of time in September. Elijah and the landlord in the end agreed on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £1,100.
Mr and Mrs. N Davis moved into a basement flat in Covent Garden in February 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Covent Garden with 100 year plus lease were valued about £173,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated in 2080. Given that there were 55 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Covent Garden property 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 was 73.26 years.