The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Little Venice have the right to extend the lease for an additional 90 years under statute. Please think carefully before delaying your Little Venice lease extension. Postponing that expense today simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold premises in Little Venice with over 100 years outstanding on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Little Venice leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her two bedroom flat in Little Venice, Kelsey initiated the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension was finalised in March 2014. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. L Norbert , who purchased a studio flat in Little Venice in April 2008. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar premises in Little Venice with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 collected quarterly. The lease finished on 23 March 2092. Given that there were 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of professional charges.
Last Autumn we were phoned by Dr Isabella Thomas , who owned a purpose-built apartment in Little Venice in November 2004. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Little Venice with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease ended in 2081. Given that there were 55 years left we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.