The closer a domestic lease in Little Venice nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Little Venice will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Little Venice,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Little Venice valuers.
Trailing lengthy discussions with the freeholder of her purpose-built flat in Little Venice, Shannon commenced the lease extension process as the eighty year mark was rapidly approaching. The transaction completed in May 2007. The landlord’s costs were kept to an absolute minimum.
In 2013 we were phoned by Ms D Collins who, having purchased a ground floor flat in Little Venice in October 2012. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Little Venice with an extended lease were worth £205,000. The average amount of ground rent was £50 collected quarterly. The lease expiry date was in 2105. Considering the 79 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Mr U Reed purchased a garden flat in Little Venice in March 2008. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Little Venice with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2094. Having 68 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.