Why you should start your Little Venice lease extension

Why you should commence your Little Venice lease extension today:

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

The re-sale value of a leasehold property in Little Venice depends on how long the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised in advance of the 80 year cut off point. Current legislation enables Little Venice qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). 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.

An extended lease has roughly the same value as a freehold

Leasehold properties in Little Venice with more than 100 years left on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not finance a property on a short lease

Lenders are inclined not grant a mortgage on short residential leases. You most probably encounter problems if you need to sell your flat in Little Venice if the unexpired lease term is below the criteria set by the majority of lenders. Different mortgage companies have different requirements but in the main theyrequire an unexpired term of at least seventy years.

What makes us experts in Little Venice lease extensions?

The lawyers that we work with handle Little Venice lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Little Venice Lease Extension Example Cases:

Alfie, Little Venice, London

In recent months Alfie, started to get near to the eighty-year mark with the lease on his garden apartment in Little Venice. Having purchased his flat two decades ago, the lease term was of little importance. by good luck, he became aware that he needed to take steps soon on a lease extension. Alfie extended the lease at the eleventh hour in August. Alfie and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had slipped lower than eighty years, the figure would have gone up by at least £1,025.

Little Venice case:

Last year we were approach by Mr and Mrs. Y Walker , who acquired a garden flat in Little Venice in November 2006. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative premises in Little Venice with an extended lease were worth £206,200. The average amount of ground rent was £60 collected annually. The lease lapsed on 12 March 2082. Considering the 56 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.

Little Venice case:

Mr and Mrs. W Hall took over the lease of a garden apartment in Little Venice in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Little Venice with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected per annum. The lease lapsed on 10 April 2102. Given that there were 76 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.