Main reasons to start your Pimlico lease extension

Why you should commence your Pimlico lease extension today:

Increase your lease and increase your Pimlico property value

It’s a harsh truth that a Pimlico residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Pimlico property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Pimlico will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.

Pimlico property with a lease extension is almost the same value as a freehold

Leasehold residencies in Pimlico with in excess of 100 years unexpired 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to finance a property on a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with less than 70 years left to run - although this varies from lender to lender. A buyer will no doubt find it difficult to obtain a mortgage and this will result in your Pimlico property being difficult to sell or to obtain finance on.

Why use us for your lease extension in Pimlico?

The conveyancers that we work with procure Pimlico 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 conveyancing solicitor we work with provide it.

Pimlico Lease Extension Case Studies:

Niamh, Pimlico, London,

Subsequent to protracted correspondence with the landlord of her garden apartment in Pimlico, Niamh commenced the lease extension process as the eighty year deadline was swiftly coming. The lease extension completed in June 2013. The landlord’s costs were restricted to approximately 600 pounds.

Pimlico case:

Last Christmas we were approach by Mr and Mrs. F Garcia , who completed a garden flat in Pimlico in September 2012. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable properties in Pimlico with a long lease were valued around £205,000. The average amount of ground rent was £50 collected quarterly. The lease ran out on 26 August 2103. Considering the 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.