Why you should start your Covent Garden lease extension

Why you should commence your Covent Garden lease extension today:

Increase your lease and increase your Covent Garden property value

When it comes to residential leasehold property in Covent Garden, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years remaining. Leasehold owners in Covent Garden with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.

Lending institutions may not finance a property on a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years left once the mortgage has expired. As a number of flats in Covent Garden were built in the fifties, sixties and seventies as a result many now need to be extended if they if they are to be mortgageable.

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

Using our service will provide you better control over the value of your Covent Garden leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Covent Garden Lease Extension Case Studies:

Tyler, Covent Garden, London,

Tyler was the the leasehold owner of a high value flat in Covent Garden on the market with a lease of fraction over 72 years remaining. Tyler on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Covent Garden case:

In 2009 we were contacted by Dr G Wright who, having owned a basement flat in Covent Garden in March 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Covent Garden with a long lease were worth £225,400. The average amount of ground rent was £45 collected yearly. The lease finished in 2090. Taking into account 64 years left we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of fees.