Why you should start your Covent Garden lease extension

Top reasons for lease extension now:

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

Covent Garden leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Covent Garden enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Covent Garden you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders may decide not to loan monies with a short lease

Many banks and building societies require a lengthy amount of time left on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be mindful that it is likely that someone intending to buy your property in the future might well do, so if they are unable to get a mortgage, then the value of your property will likely be adversely impacted. Since 2008 most banks and building societies have increased the required minimum lease length that they are willing to lend on

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

Irrespective of whether you are a tenant or a landlord in Covent Garden,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Covent Garden valuers.

Covent Garden Lease Extension Case Summaries:

Benjamin, Covent Garden, London

Last year Benjamin, started to get close to the 80-year threshold with the lease on his first floor apartment in Covent Garden. Having purchased his property twenty years ago, the length of the lease was of little interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Benjamin arranged for a lease extension at the eleventh hour in August. Benjamin and the landlord in the end settled on an amount of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,000.

Covent Garden case:

Last Winter we were called by Mr Hugo Walker , who purchased a basement flat in Covent Garden in February 1997. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative premises in Covent Garden with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed annually. The lease ended in 2098. Given that there were 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.