Main reasons to start your Victoria lease extension

Main reasons to commence your Victoria lease extension today:

Increase your lease and increase your Victoria property value

There is no doubt about it a leasehold flat or house in Victoria is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years left 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. Most flat owners in Victoria will qualify for this right; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

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

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get concerned at around 75 years. This will be problematic once you need to market or refinance your property as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your buyer must hold off for a couple of years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Victoria?

Irrespective of whether you are a tenant or a freeholder in Victoria,the lease extension lawyers 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 Example Cases:

Jason, Victoria, London

Last Christmas Jason, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Victoria. In buying his flat twenty years ago, the lease term was of no concern. As luck would have it, he noticed he needed to take action soon on Extending the lease. Jason was able to extend his lease at the eleventh hour in July. Jason and the freeholder subsequently agreed on a premium of £5,000 . If the lease had dipped to less than 80 years, the price would have become more exhorbitant by at least £875.

Victoria case:

Last Winter we were e-mailed by Ms N Walker , who acquired a ground floor flat in Victoria in June 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Victoria with a long lease were in the region of £166,400. The average amount of ground rent was £60 billed quarterly. The lease terminated on 2 August 2080. Taking into account 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including fees.