Top reasons for Westminster lease extension

Why you should start your Westminster lease extension today:

Increase your lease and increase your Westminster property value

The market value of a leasehold property in Westminster depends on how long the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed ahead of the eighty year cut off point. Leasehold Reform legislation entitles Westminster qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Westminster with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may not lend with a short lease

Mortgage Lenders differ in their lending requirements. Some draw the line at seventy five years remaining on the lease; others may be prepared to lend with anything with more than seventy years. With less than 60 years, it may be problematic to get a mortgage in the first place.

Why use us for your lease extension in Westminster?

Using our service gives you increased control over the value of your Westminster leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Westminster Lease Extension Example Cases:

Ibrahim, Westminster, London

During the course of the last few months Ibrahim, started to get near to the eighty-year threshold with the lease on his first floor flat in Westminster. Having purchased his home 18 years previously, the unexpired term was of minimal interest. As luck would have it, he recognised he needed to take action soon on Extending the lease. Ibrahim was able to extend his lease just under the wire last August. Ibrahim and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had gone below 80 years, the figure would have escalated by a minimum £1,025.

Westminster case:

Last November we were phoned by Dr B Michel , who bought a basement apartment in Westminster in August 2007. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative residencies in Westminster with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 billed every twelve months. The lease expired on 12 May 2090. Considering the 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including legals.