It’s a harsh certainty that a Little Venice residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Little Venice property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Little Venice will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
|Birmingham Midshires|| Minimum 70 years from the date of the mortgage.|
|Halifax|| Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Using our service will provide you better control over the value of your Little Venice 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.
In the wake of 6 months of protracted correspondence with the freeholder of her ground floor flat in Little Venice, Ellen initiated the lease extension process as the eighty year threshold was swiftly approaching. The transaction was concluded in May 2006. The landlord’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mrs Mia Turner who, having was assigned a lease of a one bedroom apartment in Little Venice in September 2010. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Similar homes in Little Venice with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 billed monthly. The lease ran out in 2074. Given that there were 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 not including legals.
Last Spring we were approach by Mr and Mrs. S Edwards , who moved into a ground floor apartment in Little Venice in November 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar properties in Little Venice with a long lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease expired on 13 February 2094. Taking into account 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.