The value of Little Venice leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
Leasehold residencies in Little Venice with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Little Venice can be a difficult process. We recommend you obtain 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 in-depth market knowledge 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.
Subsequent to protracted correspondence with the landlord of her garden apartment in Little Venice, Niamh initiated the lease extension process as the eighty year deadline was fast nearing. The transaction completed in July 2010. The landlord’s costs were kept to an absolute minimum.
Mr Eliot Green moved into a one bedroom flat in Little Venice in September 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Little Venice with an extended lease were in the region of £200,000. The average amount of ground rent was £50 billed quarterly. The lease ended on 17 June 2102. Considering the 77 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2009 we were phoned by Dr I Díaz who, having acquired a studio flat in Little Venice in June 1995. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable residencies in Little Venice with an extended lease were valued around £265,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2091. Having 66 years unexpired we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.