There is no doubt about it a leasehold property in Little Venice is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Little Venice will qualify for this right; that being said a lawyer should be able to confirm whether you are eligible to extend your lease. 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.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| The Mortgage Works |
The conveyancing solicitors that we work with undertake 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.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her garden apartment in Little Venice, Kelsey started the lease extension process as the eighty year deadline was swiftly approaching. The legal work was finalised in February 2014. The freeholder’s costs were negotiated to under 500 GBP.
Mr Reuben Martinez owned a newly refurbished apartment in Little Venice in April 2009. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical flats in Little Venice with 100 year plus lease were worth £230,800. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was in 2086. Having 60 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 plus professional charges.
Mrs K Rodríguez moved into a studio flat in Little Venice in January 2006. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative properties in Little Venice with a long lease were valued about £210,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated in 2106. Taking into account 80 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.