The market value of a leasehold property in Little Venice depends on how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed in advance of the 80 year mark. Current legislation entitles Little Venice qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Little Venice can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience 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.
Tommy owned a studio flat in Little Venice on the market with a lease of a few days over sixty years remaining. Tommy on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured an acceptable deal informally and sell the flat.
Mr and Mrs. G Girard purchased a ground floor apartment in Little Venice in October 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Little Venice with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish in 2097. Considering the 71 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Spring we were phoned by Mr and Mrs. V Taylor , who completed a one bedroom apartment in Little Venice in March 1998. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Little Venice with a long lease were valued around £230,800. The average ground rent payable was £60 invoiced quarterly. The lease termination date was on 17 November 2086. Considering the 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus fees.