Little Venice leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Little Venice enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Little Venice you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Little Venice flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Little Venice with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Little Venice can be a difficult process. We recommend you get guidance from a lawyer and valuer 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.
Two years ago Sam, started to get close to the eighty-year threshold with the lease on his garden flat in Little Venice. Having purchased his flat two decades ago, the unexpired term was of minimal concern. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Sam extended the lease at the eleventh hour last July. Sam and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £850.
Mrs P Wilson was assigned a lease of a newly refurbished apartment in Little Venice in February 2009. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar flats in Little Venice with a long lease were in the region of £189,000. The average ground rent payable was £55 collected per annum. The lease ended in 2077. Given that there were 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
In 2011 we were contacted by Mr and Mrs. V Young who, having moved into a garden apartment in Little Venice in January 1996. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative flats in Little Venice with a long lease were valued around £290,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish in 2097. Having 73 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.