The only way is down when it comes to Covent Garden lease terms. Covent Garden leaseholds that have a lease term less than than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Covent Garden can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Covent Garden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Aiden, came very close to the 80-year threshold with the lease on his garden apartment in Covent Garden. Having purchased his property two decades ago, the length of the lease was of minimal relevance. by good luck, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Aiden was able to extend his lease at the eleventh hour last August. Aiden and the freeholder eventually settled on sum of £5,000 . If the lease had fallen to less than 80 years, the figure would have gone up by a minimum £1,050.
In 2011 we were called by Dr Stanley Vincent who, having completed a basement apartment in Covent Garden in January 1998. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Covent Garden with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 5 February 2076. Having 51 years left we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus fees.
An example of a Freehold Enfranchisement case 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 related to 1 flat. The number of years remaining on the existing lease(s) was 73.26 years.