The re-sale value of a leasehold property in Little Venice depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded well before the 80 year threshold. Statute entitles Little Venice qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Little Venice can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Little Venice lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel was the the leasehold proprietor of a studio flat in Little Venice on the market with a lease of a little over 72 years unexpired. Samuel informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were called by Ms Kayleigh James who, having bought a studio apartment in Little Venice in June 2005. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Little Venice with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded in 2102. Considering the 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Dr Kai Johnson bought a first floor apartment in Little Venice in May 2009. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable properties in Little Venice with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2091. Considering the 65 years unexpired we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.