Main reasons to commence your Little Venice lease extension

Top reasons for lease extension now:

A Little Venice lease depreciates with the years remaining on the lease.

Little Venice 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 the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Little Venice residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Little Venice you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of 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

It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.

Lenders may decide not to issue a mortgage on a short lease

Mortgage companies are tightening their criteria and many now expect flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Given that a number of flats in Little Venice were built in the fifties, sixties and seventies as a result many now need to be extended if they wish to obtain a mortgage.

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

Engaging our service gives you increased control over the value of your Little Venice 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Little Venice Lease Extension Example Cases:

Finley, Little Venice, London

16 months ago Finley, started to get close to the eighty-year threshold with the lease on his first floor apartment in Little Venice. In buying his property 18 years ago, the unexpired term was of no relevance. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Finley was able to extend his lease just under the wire in January. Finley and the landlord subsequently agreed on the final figure of £6,000 . If he not met the deadline, the sum would have escalated by at least £1,125.

Little Venice case:

In 2009 we were contacted by Dr Ellen Edwards who, having purchased a one bedroom apartment in Little Venice in May 1997. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Little Venice with an extended lease were in the region of £250,400. The average amount of ground rent was £65 billed every twelve months. The lease terminated in 2090. Taking into account 64 years unexpired we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus legals.

Little Venice case:

In 2013 we were contacted by Ms Natasha Pérez who, having purchased a ground floor flat in Little Venice in June 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Little Venice with a long lease were worth £189,000. The average ground rent payable was £55 collected every twelve months. The lease concluded on 4 July 2079. Given that there were 53 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.