Main reasons to start your Piccadilly lease extension

Why you should start your Piccadilly lease extension today:

Increase your lease and increase your Piccadilly property value

Piccadilly leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Piccadilly enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Piccadilly you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Piccadilly property with a lease extension has roughly the same value as a freehold

Leasehold premises in Piccadilly with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This will cause difficulties once you come to market or refinance your flat as it will be effectively unmortgageable. Even though you might have no immediate plan to sell but when you do your purchaser must hold off for 2 years before they can initiate the legal procedures for a lease extension.

What makes us experts in Piccadilly lease extensions?

Lease extensions in Piccadilly can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 in-depth market knowledge procuring Piccadilly lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Piccadilly Lease Extension Example Cases:

Lucas, Piccadilly, London,

Lucas owned a high value flat in Piccadilly on the market with a lease of a few days over fifty eight years outstanding. Lucas on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Piccadilly case:

In 2013 we were e-mailed by Mr and Mrs. M Baker who, having acquired a basement apartment in Piccadilly in April 2004. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparative homes in Piccadilly with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease termination date was on 4 June 2096. Given that there were 70 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.