Why you should start your Covent Garden lease extension

Main reasons to start your Covent Garden lease extension today:

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

Covent Garden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Covent Garden tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Covent Garden you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Covent Garden with in excess of one hundred years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Mortgage companies do not like short residential leases. You most probably encounter problems where you wish to sell your flat in Covent Garden if the unexpired term of your lease is less than the criteria set by most lenders. Different mortgage companies have different requirements but in the main they are looking for a minimum remaining lease term of 65 years.

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

The lawyers 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 lawyer we work with provide it.

Covent Garden Lease Extension Case Studies:

Olivia, Covent Garden, London,

Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Covent Garden, Olivia started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The lease extension was concluded in February 2005. The landlord’s fees were negotiated to about 650 GBP.

Covent Garden case:

In 2014 we were called by Mr and Mrs. R Green who, having completed a one bedroom apartment in Covent Garden in June 2008. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Covent Garden with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 4 January 2094. Having 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.