Top reasons for Westminster lease extension

Main reasons to start your Westminster lease extension today:

Increase your lease and increase your Westminster property value

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 becomes more expensive. Legislation has been in place for sometime now allowing qualifying Westminster residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Westminster you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for 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 more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may decide not to grant a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This will be problematic once you wish to sell or refinance your property as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your purchaser will need to wait a couple of years before being able to commence the legal procedures for an extension to the lease.

Get in touch with one of our Westminster lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Westminster 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.

Westminster Lease Extension Case Summaries:

Archie, Westminster, London

Two years ago Archie, started to get close to the 80-year threshold with the lease on his one bedroom flat in Westminster. In buying his home 19 years ago, the length of the lease was of no relevance. Luckily, he noticed he needed to take steps soon on Extending the lease. Archie was able to extend his lease at the eleventh hour in August. Archie and the freeholder subsequently agreed on an amount of £5,500 . If he not met the deadline, the sum would have become more costly by at least £1,075.

Westminster case:

In 2011 we were called by Mr and Mrs. L Patel who, having acquired a first floor apartment in Westminster in March 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparable properties in Westminster with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2094. Given that there were 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.