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 as a result any extension of your lease gets more expensive. It is the case that most New Covent Garden tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in New Covent Garden you really ought to see 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 increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in New 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 New Covent Garden valuers.
Harrison owned a studio flat in New Covent Garden on the market with a lease of a little over 61 years remaining. Harrison informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
Mrs Stephanie Rodríguez was assigned a lease of a garden flat in New Covent Garden in October 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in New Covent Garden with a long lease were worth £242,600. The mid-range amount of ground rent was £45 collected monthly. The lease expired in 2093. Given that there were 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of expenses.
Dr R Fournier was assigned a lease of a newly refurbished apartment in New Covent Garden in July 2010. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in New Covent Garden with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced per annum. The lease elapsed in 2104. Given that there were 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.