Why you should start your Little Venice lease extension

Why you should start your Little Venice lease extension today:

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

When it comes to domestic leasehold property in Little Venice, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Little Venice with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has less than eighty years outstanding, under the current Act the landlord can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.

Little Venice property with a lease extension is almost the same value as a freehold

Leasehold residencies in Little Venice with more than one hundred years remaining 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not issue a mortgage with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Engaging our service will provide 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 want to sell. The conveyancing solicitors 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:

Courtney, Little Venice, London,

Subsequent to unsuccessful correspondence with the freeholder of her studio flat in Little Venice, Courtney initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was concluded in March 2009. The landlord’s charges were restricted to a tad over 450 pounds.

Little Venice case:

In 2014 we were e-mailed by Mr U King who, having was assigned a lease of a recently refurbished apartment in Little Venice in January 1999. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative residencies in Little Venice with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended in 2078. Given that there were 52 years left we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.

Little Venice case:

Mr and Mrs. L Mitchell purchased a first floor apartment in Little Venice in November 1996. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Little Venice with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed on 21 July 2098. Having 72 years as a residual term we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of legals.