Why you should commence your New Covent Garden lease extension

Top reasons for lease extension now:

Increase your lease and increase your New Covent Garden property value

New Covent Garden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying New Covent Garden residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in New Covent Garden you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may not finance a property with a short lease

Almost all banks and building societies will be unwilling to lend on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your New Covent Garden property becoming difficult to dispose of or to obtain finance on.

What makes us experts in New Covent Garden lease extensions?

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

New Covent Garden Lease Extension Example Cases:

Kian, New Covent Garden, South West London,

Kian was the the leasehold proprietor of a conversion flat in New Covent Garden on the market with a lease of fraction over sixty years left. Kian informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

New Covent Garden case:

In 2009 we were approached by Mrs P Gunderson who, having was assigned a lease of a ground floor apartment in New Covent Garden in September 2002. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable properties in New Covent Garden with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected yearly. The lease ran out in 2105. Given that there were 79 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.

New Covent Garden case:

Mr and Mrs. B Hill moved into a first floor apartment in New Covent Garden in January 2008. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in New Covent Garden with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease expired in 2085. Considering the 59 years remaining we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.