Top reasons for Victoria lease extension

Why you should start your Victoria lease extension today:

Increase your lease and increase your Victoria property value

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Victoria have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Victoria lease extension. Putting off that expense now simply escalates the amount you will eventually have to pay for a lease extension.

Victoria property with a lease extension has roughly the same value as a freehold

Leasehold properties in Victoria with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not lend on a short lease

Nearly all mortgage lenders will be unwilling to lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Victoria property being difficult to dispose of or to obtain finance on.

What makes us experts in Victoria lease extensions?

Irrespective of whether you are a tenant or a freeholder in Victoria,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Victoria valuers.

Victoria Lease Extension Case Studies:

Harrison, Victoria, London,

Harrison was the the leasehold owner of a high value flat in Victoria on the market with a lease of a few days over 72 years unexpired. Harrison informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.

Victoria case:

Last year we were e-mailed by Mr and Mrs. B Roberts , who took over the lease of a studio flat in Victoria in June 1997. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Similar premises in Victoria with a long lease were in the region of £191,000. The average ground rent payable was £65 invoiced every twelve months. The lease terminated in 2084. Having 58 years remaining we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.