Why you should commence your Westminster lease extension

Main reasons to commence your Westminster lease extension today:

A Westminster lease depreciates with the years remaining on the lease.

Westminster leases on residential properties are gradually losing 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. Legislation has been in place for sometime now which entitles qualifying Westminster residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Westminster you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Westminster with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not loan monies with a short lease

Banks and building societies are really restricting their approach as regards to properties in Westminster with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus narrowing your market.

What makes us experts in Westminster lease extensions?

Engaging our service gives you enhanced control over the value of your Westminster leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Westminster Lease Extension Example Cases:

Sian, Westminster, London,

Off the back of protracted negotiations with the freeholder of her leasehold flat in Westminster, Sian started the lease extension process as the eighty year mark was fast approaching. The legal work was finalised in March 2013. The freeholder’s fees were negotiated to slightly above 500 GBP.

Westminster case:

In 2012 we were approached by Mrs Holly Rodríguez who, having purchased a basement flat in Westminster in July 2010. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Westminster with an extended lease were in the region of £200,800. The average ground rent payable was £65 billed quarterly. The lease lapsed on 21 February 2086. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus fees.