Main reasons to commence your Covent Garden lease extension

Why you should start your Covent Garden lease extension today:

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

The market value of Covent Garden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years

An extended lease is almost the same value as a freehold

Leasehold residencies in Covent Garden with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not loan monies on a short lease

Mortgage companies are really clamping down as regards to properties in Covent Garden with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus reducing the amount of prospective buyers.

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

The conveyancing solicitors that we work with handle Covent Garden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Covent Garden Lease Extension Example Cases:

Catherine, Covent Garden, London,

Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Covent Garden, Catherine initiated the lease extension process as the 80 year mark was swiftly nearing. The lease extension was concluded in April 2012. The landlord’s fees were negotiated to approximately five hundred pounds.

Covent Garden case:

Mr and Mrs. L Rose owned a garden apartment in Covent Garden in March 2007. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative premises in Covent Garden with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 23 June 2102. Considering the 76 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.