Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Little Venice. Clearly, the term of lease left reduces over time. This is often ignored and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Little Venice have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Please give careful consideration before delaying your Little Venice lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Little Venice,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Venice valuers.
Callum was the the leasehold proprietor of a studio flat in Little Venice being marketed with a lease of a few days over fifty eight years unexpired. Callum on an informal basis approached his landlord 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 an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mrs Jasmine Wood who, having completed a one bedroom apartment in Little Venice in April 2009. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Little Venice with an extended lease were worth £267,600. The average ground rent payable was £65 billed quarterly. The lease ended in 2093. Considering the 67 years as a residual term we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.
In 2011 we were phoned by Dr W Roberts who, having moved into a first floor flat in Little Venice in November 2010. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparative residencies in Little Venice with an extended lease were in the region of £206,200. The average amount of ground rent was £60 invoiced per annum. The lease lapsed on 6 March 2082. Given that there were 56 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.