As the the remaining lease term of a Little Venice domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Little Venice will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Little Venice with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Little Venice can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 in-depth market knowledge procuring 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.
Off the back of protracted negotiations with the freeholder of her ground floor flat in Little Venice, Ellie started the lease extension process as the eighty year deadline was rapidly approaching. The transaction completed in May 2015. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. U André took over the lease of a first floor apartment in Little Venice in February 1996. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Little Venice with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected quarterly. The lease ended in 2100. Taking into account 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Dr T Rogers purchased a recently refurbished flat in Little Venice in September 1996. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable properties in Little Venice with an extended lease were valued around £248,000. The average ground rent payable was £65 billed quarterly. The lease termination date was on 2 May 2089. Given that there were 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus costs.