Little Venice leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher amount will be payable. Flat owners in Little Venice will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Little Venice with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Engaging our service will provide you increased control over the value of your Little Venice leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jude was the the leasehold proprietor of a conversion apartment in Little Venice being marketed with a lease of just over sixty years remaining. Jude informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were approached by Mr Aiden Young who, having completed a purpose-built flat in Little Venice in November 1998. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical homes in Little Venice with a long lease were worth £210,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 2 May 2106. Considering the 80 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. M Davis was assigned a lease of a ground floor apartment in Little Venice in February 1997. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical premises in Little Venice with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 billed annually. The lease ran out in 2095. Having 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.