There is no doubt about it a leasehold property in Pimlico is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Pimlico will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Pimlico with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Pimlico leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her ground floor apartment in Pimlico, Samantha started the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction completed in January 2005. The freeholder’s charges were kept to an absolute minimum.
Last March we were approach by Mr Oscar Ricardo , who acquired a studio apartment in Pimlico in March 2011. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable premises in Pimlico with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 9 May 2092. Taking into account 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
An example of a Lease Extension case for a Pimlico residence is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case was in relation to 2 flats. The unexpired term as at the valuation date was 56 years.